Chapter 5 Terms Flashcards by Bri P

a business owned, and usually managed, by one person

Sole Proprietorship

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a legal form of business with two or more owners

Partnership

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

Corporation

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

Limited partnership

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

Limited liability

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

General partnership

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

General partner

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

Limited partner

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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

Limited liability partnership (LLP)

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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

Master limited partnership (MLP)

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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

Conventional © Corporation

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S Corporations

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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Limited Liability Companies (LLCs)

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

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the result of two firms forming one company

Merger

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one companies purchase of the property and obligations of another company

Acquisition

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the joining of two companies in different stages of related businesses

Vertical merger

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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

Horizontal merger

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the joining of firms in completely unrelated industries

Conglomerate merger

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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

Franchise agreement

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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.

Co-Op

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accepting the risk of starting and running a business

Entrepreneurship

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Four Major Reasons for entrepreneurship

Opportunity
Profit
Independence
Challenge

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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

Entrepreneurial teams

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creative people who work as entrepreneurs within corporations

Intrapreneurs

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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

Micropreneurs

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

Incubators

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

Small business

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

Business plan

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

Venture capitalists

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

Market

The Four Functions of Management

Planning Organizing Leading Controlling Staffing

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

Strategic planning

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

Tactical planning

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

Operational planning

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

Contingency planning

Choosing among two or more alternatives

Decision making

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

Problem solving

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

Brainstorming

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

PMI (plus,minus,implication)

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

Mission statement

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

Objectives

giving workers the education and tools they need to make decision

Enabling-

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

Empowerment-

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

Culturists

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

Politicists

What are the Major Types of Partnerships?

General Partnership, Limited Partnership

What are the types of Partners?

General Partner, Limited Partner, Limited Liability

What are the Major Types of Partnerships?

General Partnership, Limited Partnership

What are The Three Major Forms of Business Ownership?

Sole Proprietorship, Partnership, Corporation

What are the Four Major Reasons for Entrepreneurs?

Opportunity, Profit, Independence, Challenge

What are the Types of Planning?

Strategic Planning, Tactical Planning, Operational Planning, Contingency Planning

What are the Four Major Reasons for Entrepreneurs?

Opportunity, Profit, Independence, Challenge

What are the Different Types of Mergers?

Vertical Merger, Horizontal Merger, Conglomerate Merger

What are the different Corporations?

C Corporations, S Corporations, and LLCs

Task and Skills at Different Levels of Management?

Technical Skills, Human Relations Skills, Conceptual Skills

What are the Types of Leadership Styles?

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

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

Internal Customers

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

External Customers

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

Knowledge Management

4 Types of Executives

Rationalists, Humanists, Politicists, and Culurists

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

Free-Rein Leadership

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

Participative (democratic) Leadership

Leadership style that involves making managerial decisions without consulting others.

Autocratic Leadership

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

Transparency

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

Human Relations Skills

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

Conceptual Skills

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

Technical Skills

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

Supervisory Management

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

Middle Management

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

Top Management

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

SWOT analysis

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

Goals

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

Vision

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

Staffing

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.

Controlling

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.

Leading

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.

Organizing

are funded jointly by the federal government and individual states

Small Business Development Centers (SBDC)

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

Service Corps of Retired Executives (SCORE)

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

Market

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

Small business association

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

Enterprise Zones

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

Leveraged Buyout (LBO)