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Understanding Business > Chapter 5 Terms > Flashcards

Chapter 5 Terms Flashcards

1
Q

a business owned, and usually managed, by one person

A

Sole Proprietorship

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2
Q

a legal form of business with two or more owners

A

Partnership

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3
Q

a legal entity with authority to act and have liability separate from its owners

A

Corporation

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4
Q

a partnership with one or more general partners and one or more limited partners

A

Limited partnership

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4
Q

the responsibility of a business’s owners for losses only up to the amount they invest; limited partners & shareholders have limited liability

A

Limited liability

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4
Q

a partnership in which all owners share in operating the business and in assuming liability for the business’s debts

A

General partnership

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4
Q

an owner (partner) who has unlimited liability and is active in managing the firm

A

General partner

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4
Q

an owner who invests money in the business but does not have any management responsibility or liability for losses beyond the investment

A

Limited partner

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4
Q

a partnership that limits partners’s risk of losing their personal assets to only their own acts and omissions and to the acts and omissions of people under their supervision

A

Limited liability partnership (LLP)

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5
Q

a partnership that looks much like a corporation (in that it acts like corporation & is traded on a stock exchange) but is taxed like a partnership and thus avoids the corporate income tax

A

Master limited partnership (MLP)

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5
Q

A state-chartered legal entity with authority to act and have liability separate from its owners (its stockholders)
Enables many people to share in ownership
Can share in profits without working there

A

Conventional © Corporation

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5
Q

S Corporations

A

A unique government creation that looks like a corporation but is taxed like sole proprietorship and partnerships
Have shareholder,directors,and employees,plus the benefit of limited liability
Profits are taxed only as the personal income of the shareholders .

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6
Q

Limited Liability Companies (LLCs)

A

LLCs are similar to an S-corp but without the special eligibility requirements.

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7
Q

the result of two firms forming one company

A

Merger

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8
Q

one companies purchase of the property and obligations of another company

A

Acquisition

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9
Q

the joining of two companies in different stages of related businesses

A

Vertical merger

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10
Q

the joining of two firms in the same industry
Merger between competitors must prove to the Federal Trade Commision that the new combined company does not limit competition unfairly

A

Horizontal merger

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11
Q

the joining of firms in completely unrelated industries

A

Conglomerate merger

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12
Q

an arrangement whereby someone with a good idea for a business (franchisor) sells the rights to use the business name & sell a product or service (franchise) to others (franchisees) in a given territory
Can be formed as a sole proprietorship, a partnership, or a corporation

A

Franchise agreement

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13
Q

A business owned and controlled by the people who use it– producers, consumers, or workers with similar needs who pool their resources for mutual gain.

A

Co-Op

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14
Q

accepting the risk of starting and running a business

A

Entrepreneurship

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15
Q

Four Major Reasons for entrepreneurship

A

Opportunity
Profit
Independence
Challenge

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16
Q

a group of experienced people from different areas of business who join to form a managerial team with the skills to develop,make, and market a new product

A

Entrepreneurial teams

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17
Q

creative people who work as entrepreneurs within corporations

A

Intrapreneurs

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18
Q

entrepreneurs willing to accept the risk of starting and managing a business that remains small,lets them do the work they want to do , and offers them a balanced lifestyle

A

Micropreneurs

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19
Q

centers that offer new businesses low-cost offices with basic business services

A

Incubators

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20
Q

a business that is independently owned and operated, is not dominant in its field of operation, and meets certain standards of size (set by the small business admin.) in terms of employees annual receipts

A

Small business

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21
Q

a detailed written statement that describes the nature of the business,the target market, the advantages the business will have in relation to competition, and the resources

A

Business plan

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22
Q

individuals or companies that invest new businesses ion exchange for partial ownership of those businesses

A

Venture capitalists

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23
Q

people with unsatisfied wants and needs who have both resources and willingness to buy

A

Market

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24
Q

The Four Functions of Management

A

Planning
Organizing
Leading
Controlling
Staffing

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25
Q

determining the major goals of the organization and the policies and strategies for obtaining and using resources to achieve these goals

A

Strategic planning

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26
Q

developing detailed, short term statements about what is to be done, who is to do it, and how it is to be done.

A

Tactical planning

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27
Q

The process of setting work standards and schedules necessary to implement the company’s tactical objectives.

A

Operational planning

28
Q

The process of preparing alternative courses of action that may be used if the primary plans don’t achieve the organization’s objectives.

A

Contingency planning

29
Q

Choosing among two or more alternatives

A

Decision making

30
Q

The process of solving the everyday problems that occur. Problem solving is less formal than decision making and usually calls for quicker action.

A

Problem solving

31
Q

Coming up with as many solutions to a problem as possible in a short period of time with no censoring of ideas.

A

Brainstorming

32
Q

Listing all the pluses for a solution in one column, all the minuses in another, and the implications in a third column.

A

PMI (plus,minus,implication)

33
Q

an outline of the fundamental purposes of an organization including:

The organizations self-concept
Its philosophy
Its long term survival needs
Its customer needs
Its social responsibility
The nature of its products or services

A

Mission statement

34
Q

specific, short-term statements detailing how to achieve the organization’s goals

A

Objectives

35
Q

giving workers the education and tools they need to make decision

A

Enabling-

36
Q

progressive leaders give employees the authority to make decisions on their own without consulting a manager.

A

Empowerment-

37
Q

consider culture the preeminent force in an organization and communicate through stories, ceremonies and rituals.

A

Culturists

38
Q

View group dynamics from a power perspective and are adept at politics

A

Politicists

39
Q

What are the Major Types of Partnerships?

A

General Partnership, Limited Partnership

40
Q

What are the types of Partners?

A

General Partner, Limited Partner, Limited Liability

41
Q

What are the Major Types of Partnerships?

A

General Partnership, Limited Partnership

42
Q

What are The Three Major Forms of Business Ownership?

A

Sole Proprietorship, Partnership, Corporation

43
Q

What are the Four Major Reasons for Entrepreneurs?

A

Opportunity, Profit, Independence, Challenge

44
Q

What are the Types of Planning?

A

Strategic Planning, Tactical Planning, Operational Planning, Contingency Planning

45
Q

What are the Four Major Reasons for Entrepreneurs?

A

Opportunity, Profit, Independence, Challenge

46
Q

What are the Different Types of Mergers?

A

Vertical Merger, Horizontal Merger, Conglomerate Merger

47
Q

What are the different Corporations?

A

C Corporations, S Corporations, and LLCs

48
Q

Task and Skills at Different Levels of Management?

A

Technical Skills, Human Relations Skills, Conceptual Skills

49
Q

What are the Types of Leadership Styles?

A

Autocratic Leadership, Participative (democratic) Leadership, Free-Rein Leadership

50
Q

Individuals and units within the firm that receive services from other individuals or units.

A

Internal Customers

51
Q

Dealers, who buy products to sell to others, and ultimate customers (or end users), who buy products for their own personal use.

A

External Customers

52
Q

Finding the right information, keeping the information in a readily accessible place, and making the information known to everyone in the firm.

A

Knowledge Management

53
Q

4 Types of Executives

A

Rationalists, Humanists, Politicists, and Culurists

54
Q

Leadership style that involves managers setting objectives and employees being relatively free to do whatever it takes to accomplish those objectives.

A

Free-Rein Leadership

55
Q

Leadership style that consists of managers and employees working together to make decisions.

A

Participative (democratic) Leadership

56
Q

Leadership style that involves making managerial decisions without consulting others.

A

Autocratic Leadership

57
Q

The presentation of a company’s facts and figures in a way that is clear and apparent to all stakeholders.

A

Transparency

58
Q

Skills that involve communication and motivation; they enable managers to work through and with people.

A

Human Relations Skills

59
Q

Skills that involve the ability to picture the organization as a whole and the relationships among its various parts.

A

Conceptual Skills

60
Q

Skills that involve the ability to perform tasks in a specific discipline or department.

A

Technical Skills

61
Q

Managers who are directly responsible for supervising workers and evaluating their daily performance.

A

Supervisory Management

62
Q

The level of management that includes general managers, division managers, and branch and plant managers who are responsible for tactical planning and controlling.

A

Middle Management

63
Q

Highest level of management, consisting of the president and other key company executives who develop strategic plans.

A

Top Management

64
Q

A planning tool used to analyze an organization’s strengths, weaknesses, opportunities, and threats.

A

SWOT analysis

65
Q

The broad, long-term accomplishments an organization wishes to attain.

A

Goals

66
Q

An encompassing explanation of why the organization exists and where it’s trying to go.

A

Vision

67
Q

A management function that includes hiring, motivating, and retaining the best people available to accomplish the company’s objectives.

A

Staffing

68
Q

Establishing clear standards to determine whether an organization is progressing toward its goals and objectives, rewarding people for doing a good job, and taking corrective action if they are not.

A

Controlling

69
Q

Creating a vision for the organization and communicating, guiding, training, coaching, and motivating others to work effectively to achieve the organization’s goals and objectives in a timely manner.

A

Leading

70
Q

Designing the structure of the organization and creating conditions and systems in which everyone and everything work together to achieve the organization’s goals and objectives.

A

Organizing

71
Q

are funded jointly by the federal government and individual states

A

Small Business Development Centers (SBDC)

72
Q

An SBA office with volunteers from industry, trade associations, and education who counsel small businesses at no cost (except for expenses).

A

Service Corps of Retired Executives (SCORE)

73
Q

People with unsatisfied wants and needs who have both the resources and the willingness to buy.

A

Market

74
Q

A U.S. government agency that advises and assists small businesses by providing management training and financial advice and loans.

A

Small business association

75
Q

Specific geographic areas to which governments try to attract private business investment by offering lower taxes and other government support.

A

Enterprise Zones

76
Q

An attempt by employees, management, or a group of investors to purchase an organization primarily through borrowing.

A

Leveraged Buyout (LBO)

Understanding Business (6 decks)

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