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Intro to Business > midterm - chapter 5 > Flashcards

midterm - chapter 5 Flashcards

1
Q

businesses that get supplies from other producers and convert them into products, they sell their products to consumers and other businesses

A

manufacturers

ex. cereal maker, computer company

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2
Q

a business owned and controlled by just one person

A

sole proprietorship

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3
Q

a specific statement of results the business expects to achieve

A

goal

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4
Q

business that complete activities that are consumed by customers rather than offering products for sale

A

service businesses

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5
Q

a business owned and controlled by two or more people who have entered into a written agreement

A

partnership

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6
Q

businesses involved in selling the goods and services of producers to consumers and other businesses

A

intermediaries

ex. storage center, advertising agency, Macy’s, Target

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7
Q

a written contract granting permission to operate a business to sell products and services in a prescribed way

A

franchise

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8
Q

guidelines used in making consistent decisions

A

policies

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9
Q

What are the pros and cons of corporation?

A
  • pros: owners are employees so not responsible for any lawsuits or debt
  • cons: difficult to start, must meet more legal requirements, not all owners have decision making privledge, only board of directors decide how profits are shared
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10
Q

The people who make the major policy and financial decisions in a corporation are the

  • investors
  • board of directors
  • managers
  • owners
A

board of directors

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11
Q

a business owned and controlled by 2 or more people who have entered into an agreement

A

partnership

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12
Q

What are the pros and cons of a franchise?

A
  • pros: don’t have to come up with logo, brand name, or products; can expand using investments made by other people
  • cons: large initial capital required, no freedom for creativity, must buy products from franchiser which can be expensive, franchisee receives business profits
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13
Q

a short, specific written statement of the reason a business exists and what it wants to accomplish

A

mission statement

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14
Q

The form of ownership that gives one person sole control over all business decisions is the

  • proprietorship
  • partnership
  • corporation
  • franchise
A

proprietorship

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15
Q
  • a group of people who oin to do some activity that benefits the public
  • they work in areas such as education, health care, charity or the arts
A

nonprofit corporation

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16
Q
  • offers the limited liability of a corporation
  • all income is passed through to the owners based ontheir investment and is taxed on their individual tax returns
A

S-corporation

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17
Q

What are the pros and cons of sole proprietorship?

A
  • pros: easy to start, total control over business, receives all profits, tax benefits
  • cons: have to do it all on your own, can be sued, responsible for debts if the business fails
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18
Q

a written agreement among all owners that specifies the rules and procedures that guide ownership and operations

A

partnership agreement

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19
Q

the people who make the major policy and financial decisions for a corporation

A

board of directors

20
Q

businesses involved in selling the goods and services of producers to consumers and other businesses

A

intermediaries

21
Q

a business carries out activities that are consumed by its customers

A

service business

ex. dentists, physicians, lawyers, painters, movers, internet service providers

22
Q

What is the size of a typical American business?

A
  • most US businesses are very small
  • most businesses have no employees other than the owner
23
Q

a written legal document that identifies ownership and operating procedures and conditions for the business

A

articles of incorporation

24
Q

What are the roles of busineses in the US economy?

A
  • the most important role of busineses is to make and distribute products and services needed by consumers, government and other businesses
  • businesses provide employment for millions of people
  • employee wages are then used to purchase goods and services
  • profits earned by businesses are used to compensate owners and investors
  • businesses pay taxes to federal, state and local governments
  • government then spend these taxes to provide services such as clean water, well maintained streets, police, hospitals and schools
25
Q

Which of the following is not one of the common activities of all businesses?

  • producing goods and services
  • employing and training personnel
  • marketing goods and services
  • maintaining business records
A

producing goods and services

(not all businesses PRODUCE)

26
Q

What are the 5 types of businesses?

A
  1. producer
  2. extractor
  3. manufacturer
  4. intermediary
  5. service
27
Q

How do businesses impact communities?

A
  • when new business opens, hires new employees who get paid wages
  • also buy goods and services from other businesses in area
  • employees and businesses then spend their money to purchase things
  • money spent may result in the need for more employees in community
  • when a large business opens like Target or Walmart, other businesses move to the area and more and more jobs become available
28
Q

What is the purpose of businesses?

A
  • to make the goods and services people use every day
  • includes products and services used by other businesses and those needed by individual consumers
29
Q
  • provides liability protection for owners
  • it has a simpler set of organizing and operating requirements than a corporation
  • no articles of incorporation or bylaws are needed
  • a simpler document much like a partnership agreement must be developed
A

Limited Liability Company (LLC)

30
Q

a partnership that identifies some investors who cannot lose more than the amount of their investment, but they are not allowed to participate in the day-to-day management of the business.

A

Limited Liability Partnership

31
Q

a unique business organization by two or more other businesses to operate for a limited time and for a specific project, it is a type of partnership

A

joint venture

32
Q

What are the 5 forms of business ownership?

A
  1. sole proprietorship
  2. partnership
  3. corporation
  4. franchise
  5. nonprofit corporation
33
Q

What are the pros and cons of partnership?

A
  • pros: easy to start, owners share responsibility
  • cons: have to share profits, must agree with each other, all partners responsible for debts if business fails
34
Q

a separate legal entity, formed by documents filed with the state, which is owned by one or more shareholders and managed by a board of directors

A

corporation

35
Q

a business that takes resources from nature for direct consumption or for use in developing other products

A

extractor

ex. oil drilling, mining coal, farming

36
Q

one who has no explicit or implicit contract for long term employment

A

contingent worker

37
Q

How has the US job market changed?

A
  • US experienced a cycle of employment growth and decline
  • careers shifting from manufacturing and agriculture work to service jobs
  • employment also declines during recessions and grows during recoveries
38
Q

A special form of business organization that combines advantages of a corporation and a partnership is a

  • franchise
  • nonprofit corporation
  • cooperative
  • limited liability company
A

limited liability company

39
Q

descriptions of the way work is to be done

A

procedures

40
Q

The largest number of US businesses employ

  • more than 100 people
  • between 50 and 100 people
  • between 10 and 20 people
  • no employees other than the owner
A

no employees other than the owner

41
Q

individuals and organizations that determine what products and services will be available for sale

A

producers

ex. extractors, manufacturers

42
Q

What are the 6 business activities?

A
  1. Generating Ideas - new businesses beginw ith new idea, businesses have to continue to improve and develop new ideas
  2. Raising Capital - need money to operate, money comes from owners and loans
  3. Employing and Training Personnel - hire and train employees, new employees are trained to do their jobs correctly
  4. Buying Goods and Services - businesses buy goods and services, use purchases for their own operation
  5. Marketing Goods and Services - if no marketing, products and services may be unsold
  6. Maintaining Business Records - keep records to track performance, make decisions, track customer’s orders and payments, submit to government
43
Q

What are the 5 key stakeholders in a business?

A
  1. Who are the owners?
  2. Who are the creditors?
  3. Who are the employees?
  4. Who are the suppliers?
  5. Who are the customers?
44
Q

a diagram that shows the structure of an organization, classifications of jobs, and the relationships among those classifications

A

organization chart

45
Q

A retailer is an example of a(n)

  • extractor
  • producer
  • intermediary
  • service business
A

intermediary

Intro to Business (41 decks)

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