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Intro to Business > lists chapter 6,7,8 > Flashcards

lists chapter 6,7,8 Flashcards

1
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

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2
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
few fringe benefits

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3
Q

what are the 3 forms of partnerships?

A

general partnership
limited liability partnership
limited partnership

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4
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

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5
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

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6
Q

what are the 5 types of corporations?

A

private
public
non-profit
professional corporations
crown corporations

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7
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

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8
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

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9
Q

what are the 5 ways of corporate expansion?

A

a merger
an acquisition
a vertical merger
a horizontal merger
a conglomerate merger

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10
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

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11
Q

what are the 6 things the franchisee agrees to in the franchise agreement?

A

to follow the franchisor’s operating rules

keeping inventory at certain levels,

buying a standard equipment package,

keeping up sales and service levels

taking part in franchisor promotions

maintaining relationship with the franchisor

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12
Q

what are 5 things the franchisor agree to in a franchise agreement?

A

franchisor provides the use of a proven company name and symbols

provides training

provides management assistance

provides employee training

provides financial assistance

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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

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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

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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

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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

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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

18
Q

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

A

amount of wealth creation
speed of wealth creation
risk
innovation

19
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

20
Q

what are the four types on entrepreneurs?

A

classic entrepreneurs
micropreneurs
multipreneurs
intrtapreneurs

21
Q

what are the 5 reasons small business is important?

A

contribute to growth in specific areas of the economy

create jobs

spark innovation

best route to success

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

22
Q

what are 10 potential small businesses?

A

home renovation services
pet products and services
catering services
cleaning services
events management services
E-commerce
beauty services
sewing and alteration services
business/life coach services
online course creators

23
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

24
Q

what are the 5 disadvantages of small business?

A

financial risk
stress
time commitment
undesirable duties
limitations

25
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

26
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

27
Q

what are the four 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 from another company

28
Q

what are the five functions of managing a small business?

A

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

29
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

30
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

31
Q

what are the three basic categories of managerial skills?

A

technical
human relations
conceptual skills

32
Q

what are the 4 functional areas of management?

A

planning
organizing
leading
controlling

33
Q

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

A

goals
objectives
plans

34
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

35
Q

what are the 4 planning strategies?

A

strategic planning
tactical planning
operational planning
contingency planning

36
Q

what are the 5 steps in the decision making process?

A

recognize or define the problem or opportunity

gather information to identify alternative solutions or actions

select one or more alternatives after evaluating the strengths and weakness of each possibility

put chosen alternative into action

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

37
Q

what are the 4 intrinsic values leaders are motivated?

A

needs
desires
motive
will power

38
Q

what are the 5 kinds of power?

A

legitimate power
reward power
coercive power
expert power
referent power

39
Q

what are the three leadership styles?

A

autocratic
participative/ democratic
free rein

40
Q

what are the 5 steps of the controlling function of management?

A

establish clear performance standards

monitor actual performance

compare performance results against plans and standards

communicate results to the employees involved

take corrective action when needed and provide positive feed back

41
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

42
Q

what is management?

A

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

Intro to Business (25 decks)

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