Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Intro to Business > core concepts chapter 6,7,8 > Flashcards

core concepts chapter 6,7,8 Flashcards

1
Q

what is a sole proprietorship?

A

one person owning and operating a business, without forming a corporation

in a sole proprietorship, the business and owner are a single entity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

what are the 6 advantages to a sole proprietorship?

A

easy and inexpensive to form

profits are retained by the owner

direct control of the business

freedom from government regulation

taxed once

ease of dissolution

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

what are the 7 disadvantages of a sole proprietorship?

A

unlimited liability
difficulty raising capital
limited managerial expertise
trouble finding qualified employees
personal time commitment unstable business life (limited lifespan)
losses are the owners responsibility
limited growth few fringe benefits

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

what are the 3 forms of partnerships?

A

general partnership
limited liability partnership
limited partnership

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

explain a limited partnership?

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

what is a limited liability partnership?

A

Limits all partner’s risks of losing their personal assets to the outcomes of only their own acts and omissions and those of people under their supervision

all other partners are not liable for another partners mistakes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

what are the 6 advantages of a partnership?

A

more financial resources

shared management and pooled, complementary skills and knowledge

longer survival

shared risk

special taxes

flexibility

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

what are the 5 disadvantages of a partnership?

A

unlimited liability
division of profits
disagreements among partners
difficulty of termination
possibility of higher taxes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

what are the 5 types of corporations?

A

private
public
non-profit
professional corporations
crown corporations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

what are the 7 advantages to a corporations?

A

limited liability

more money for investment

size: may be larger due to increased resources

perpetual life

ease of ownership change

ease of attracting talented employees

separation of ownership from management

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

what are the 6 disadvantages of corporations?

A

high initial costs
extensive paperwork
double taxation
two tax returns
termination is difficult
stock holder and board conflict

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

what are the four reasons why mergers do not work?

A

companies overpay to acquire another firm

acquiring company overestimates cost saving and synergies

after merger, managers disagree about integrating operations

after merger, cost cutting obsession hurts business, costing the top employees and customers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

what are the 5 responsibilities of a franchisor?

A

assign territory

may provide financial aid/advice

offers merchandise or supplies at a competitive price

provides training and support

business expansion

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

what are the 4 responsibilities of a franchisee?

A

pay upfront costs

make monthly or annual payments to the franchisor (royalty fee)

runs business by franchisors rules and procedures

buys materials from franchisor or approved supplier

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

what are the 5 advantages to franchises?

A

management and marketing assistance

personal ownership

nationally recognized name

financial advice and assistance

low failure rate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

what are the 6 disadvantages to franchises?

A

large start up cost

shared profit

management regulations

coattail effect

restrictions on selling

fraudulent franchisors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

what are the 4 ways to avoid disaster in a franchise?

A

research officers and their business experience

get all summary of any bankruptcy and litigation

estimate ALL costs to set up a franchise

review franchise contract and three most recent financial statments

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

what is the difference between the intent of small business and the intent of entrepreneurship?

A

small business is fine remaining small and does try to innovate and grow to become a larger company or corporation

entrepreneurship may start small but the intention is to grow to a large scale company corporation and revolutionize the market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

what are the 4 ways entrepreneurial ventures differ from small business?

A

amount of wealth creation
speed of wealth creation
risk
innovation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

what is entrepreneurship?

A

taking a risk to either create a new business or to greatly change the scope and direction of an existing one

entrepreneurs are typically innovators who start companies to pursue their ideas for a new product or service

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

what is a small business owner?

A

people with technical expertise who started a business or bought an existing small business and made a conscious decision to stay small

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

what are the 6 reasons people take the entrepreneurial challenge?

A

opportunity presents itself (to fill a customers needs, or they have a skill or resources)

new idea, product or product
profit
challenge
family pattern
independence

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

what is an example of small business vs entrepreneurship?

A

the owner of a local independent bookstore is a small business owner. Jeff Bezos, founder of Amazon, also sells books. but Bezos is an entrepreneur because he revolutionized the bookselling world

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

what are the four types on entrepreneurs?

A

classic entrepreneurs
micropreneurs
multipreneurs
intrtapreneurs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

what is a classic entrepreneur?

A

a risk taker who starts their own companies based on innovative ideas and bringing new products to market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

what is a micropreneur?

A

micropreneurs are someone who starts small and plans to stay small they normally have 1-4 employees

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

what is a multipreneur?

A

multipreneurs are someone who starts a series of companies. they thrive on the challenge of building a business and watching it grow (start with one entrepreneurial venture and it presents an opportunity for another one)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

what is an intrepreneur?

A

they are entrepreneurs that don’t own their own companies but apply their creativity, vision and risk-taking within a large corporation. enjoy the freedom to grow ideas and develop products but with less risk due to being part of a big corporation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

what is defined as a small business?

A

a independently owned and operated business that meets certain standards of size interms of employees or annual revenue

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

what are the 5 reasons small business is important?

A

contribute to growth in specific economic areas
create jobs

spark innovation

provide opportunities for many people to achieve financial success and independence, including women and minorities

compliment the economic activity of large organizations by providing them with services

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

what are the 7 advantages of a small business?

A

independence

personal satisfaction from work

best route to success

rapidly changing technology

major corporate restructuring and downsizing

outsourcing

small business are resilient

32
Q

what are the 5 disadvantages of small business?

A

financial risk
stress
time commitment
undesirable duties
limitations

33
Q

what are some (6) resources for small businesses that the government offers?

A

business and industry services

business development bank of Canada

innovation, science and economic development canada

canadian chamber of commerce

business accelerator (access to mentorship and investors)

business incubators (space, services, advice, support and financial assistance)

34
Q

what are the 3 causes for small business success?

A

pay attention to competition

business in a growth industry

product is not easily replicated

35
Q

what are the 12 things that can lead to small business failure?

A

plunging in without first testing testing the waters on a small scale

underpricing or overpricing goods or services

underestimating how much time it will to take to build a market

staring with too little capital

starting with too much capital and being careless in its use

going in to business with little or no experience and without first learning something about the industry or market

borrowing money without planning how and when to pay it back

not allowing for setback and unexpected setbacks

buying to much on credit

extending credit to freely

expanding credit too rapidly

failing to complete accurate records so that the owners drift into trouble without realizing it

36
Q

what are the 4 ways to get into your first business venture?

A

start your own company

buy an existing franchise unit

inherit or take over a family business

get some experience and ideas

37
Q

what are the 5 functions of managing a small business?

A

planning the business
financing the business
knowing the customers (marketing)
managing the employees
maintaining records (accounting)

38
Q

what are the details (4) of a written business plan?

A

nature of the business

target market

advantages the business will have over competition and the resources

qualifications of the owners

39
Q

what are the 10 key elements of a business plan?

A

cover letter
executive summary
company background
management team
financial plan
capital required
marketing plan
location analysis
manufacturing plan
appendix

40
Q

what are the 3 positives of a small business going global?

A

access to world market
absorb (sell) excess inventory
extend product life

41
Q

what are the 4 negatives of small business going global?

A

financing difficult
not knowing how to get started
lack of cultural understanding
paperwork

42
Q

what is management?

A

the process of guiding the development and allocation of resources to attain organizational goals

43
Q

what are the three basic categories of managerial skills?

A

technical
human relations
conceptual skills

44
Q

what are the three levels of management?

A

top managers
middle managers
first-line managers

45
Q

what is an acronym for the 4 functions management areas?

A

P.L.O.C

46
Q

what are the 4 functional areas of management?

A

planning
organizing
leading
controlling

47
Q

explain the planning functional area of management?

A

anticipating potential problems or opportunities and planning how to deal with them

48
Q

explain the organizing functional area of management?

A

coordinating and allocating the resources needed to implement plans
(allocating budget to different areas)

49
Q

explain the leading functional area of management?

A

creating a vision for the organization and motivating others to achieve that objective

50
Q

explain the controlling functional area of management?

A

establishing clear standards, reviewing results and making any necessary corrective actions

51
Q

what are the three things that are in a company vision?

A

goals
objectives
plans

52
Q

what is a SWOT analysis?

A

how strengths can be capitalized on

how weakness can be improved

how opportunities can be exploited

how strengths can be mitigated

53
Q

what are the 4 planning strategies?

A

strategic planning
tactical planning
operational planning
contingency planning

54
Q

what is tactical planning?

A

the identification of specific, short-range objectives by lower managers

55
Q

what is contingency planning?

A

backup plans in case primary plans fail

56
Q

what is operational planning?

A

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

57
Q

what does strategic planning involve?

A

creating long-range (1-5 years) broad goals and determining how the organization will accomplish those goals

58
Q

what are the two categories of decision making?

A

programed decision making
nonprogrammed decision making

59
Q

what is programmed decision making?

A

decisions that are made in response to routine situations that occur frequently

ex: scheduling

60
Q

what is non-programmed decision making?

A

decisions that are infrequent, unforeseen or very unusual problems and opportunities

61
Q

what are the 5 steps in the decision making process?

A

recognize the problem or opportunity

gather information to identify alternative actions

select one or more alternatives after evaluating S and W

put chosen alternative into action

gather information to obtain feedback on the effectiveness of the chosen plan

62
Q

what are the 5 ways kinds of power?

A

legitimate power
reward power
coercive power
expert power
referent power

63
Q

what is legitimate power?

A

power that comes from an individuals position in an organization

64
Q

what is reward power?

A

the power that coms from an individuals control over rewards

65
Q

what is coercive power?

A

power that comes from an individuals ability to threaten and produce negative outcomes

66
Q

what is expert power?

A

power that comes from an individuals extensive knowledge in one or more areas

67
Q

what is referent power?

A

the power that comes with their influence and respect of their opinion

68
Q

what are the three leadership styles?

A

autocratic
participative/ democratic
free rein

69
Q

what is autocratic leadership?

A

they are directive leaders and wants their subordinates to follow their directions, they like to make all of the decisions

70
Q

what is participative/ democratic leadership?

A

they share decision making with with group members and encourage discussion of issues and alternatives

71
Q

what are the three types of participative leadership?

A

democratic leaders
consensual leaders
consultive leader

72
Q

what is free-rein leadership?

A

managers who use this style turns over all authority and control to subordinates and let the employees figure out the best way to figure things out

73
Q

what makes a leader effective?

A

leaders that recognize employee growth and select a leadership style that matches the maturity and competency levels of those completing the tasks

74
Q

what are the 5 responsibilities of a franchisor?

A

assign territory

may provide financial aid/advice

offers merchandise or supplies at a competitive price

provides training and support

business expansion

75
Q

what are the 4 responsibilities of a franchisee?

A

pay upfront costs

make monthly or annual payments to the franchisor (royalty fee)

runs business by franchisors rules and procedures

buys materials from franchisor or approved supplier

76
Q

what is controlling in management?

A

the process of assessing the organizations progress towards accomplishing its goals

Intro to Business (25 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions