research fbla 1- 100 Flashcards
executive summary
a short document or section of a document, produced for business purposes, that summarizes a longer report or proposal / contains a brief statement of the problem or proposal covered in the major document(s), background information, concise analysis and main conclusions / has been described as possibly the most important part of a business plan
Mission statement
a formal summary of the aims and values of a company, organization, or individual- usually about several sentences to a paragraph long.
cover letter
a letter sent with, and explaining the contents of, another document
net worth formula
Assets - Debts/Liabilities
debt capital
refers to the capital/profit from a loan made to a company that is normally repaid at some future date
venture capital
capital invested in a project in which there is substantial risk (e.g. new business)
equity capital
refers to loans given to a company in return for a share of the company itself
oligopoly
a state of limited competition, in which a market is shared by a small number of producers or sellers
monopolistic competition
a type of imperfect competition such that many producers sell products that are different from one another (e.g. branding or quality) and hence are not perfect substitutes for one another
perfect competition
In economic theory, perfect competition (sometimes called pure competition) describes markets such that no participants are large enough to have the market power to set the price of a homogeneous product
monopoly
the exclusive possession or control of the supply or trade in a commodity or service
chamber of commerce
a local association to promote and protect the interests of the business community in a particular place
federal government
government in which power is shared between the states and the national government (Does this really have to be on the list)
traditional economy
an original economic system in which traditions, customs, and beliefs shape the goods and the products the society creates (mainly agricultural countries)
market economy
an economy in which decisions regarding investment, production and distribution are based on supply and demand, and prices of goods and services are determined in a free price system (essentially laissez-faire)
command economy
system in which the means of production are publicly owned and economic activity is controlled by a central authority
mixed economy
economy in which both private and state sectors direct the economy
wheeler - lea act
restricts unfair or deceptive acts of increasing revenue/business (no false advertising)
Sherman act
prohibits certain business activities that seem to be anti competitive such as monopolies or cartels(selling things high and restricting competition)
Clayton Act
an act to strengthen the antitrust laws that were put into place by the Sherman Act. It provides more detailed provisions to prohibit anticompetitive price discrimination, kept corporations from making exclusive dealing practices and expanded the ability for individuals to sue for damages.
Robinson-Patman Act
- supposed to prevent “unfair competition”
- requires business to sell its products regardless of who is the buyer and was intended to prevent large volume buyers from having an advantage over small volume buyers
- act applies to only sales of tangible goods that are completed within a reasonably close time frame and where the goods sold are similar in quality
franchise
A franchise is a type of business that is owned and operated by individuals (franchisees) but that is branded and overseen by a much larger—usually national or multinational—company (the franchisor).
entrepreneur-
An entrepreneur is a person who organizes and manages a business undertaking, assuming the risk for the sake of profit.
intrapreneur
An inside entrepreneur, or an entrepreneur within a large firm, who uses entrepreneurial skills without incurring the risks associated with those activities. Intrapreneurs are usually employees within a company who are assigned a special idea or project, and are instructed to develop the project like an entrepreneur an entrepreneur would.
business plan
identify all actions required up to the point when the firm opens its door
productional plan
A production plan is that portion of your intermediate-range business plan that your manufacturing / operations department is responsible for developing. The plan states in general terms the total amount of output that the manufacturing department is responsible to produce for each period in the planning horizon.
scope
A project management term for the combined objectives and requirements necessary to complete a project. Properly defining the scope of a project allows a manager to estimate costs and the time required to finish the project.
alignment
Linking of organizational goals with the employees’ personal goals. Requires common understanding of purposes and goals of the organization, and consistency between every objective and plan right down to the incentive offers.
entropy
the measure of the level of disorder in a closed but changing system, a system in which energy can only be transferred in one direction from an ordered state to a disordered state. Higher the entropy, higher the disorder and lower the availability of the system’s energy to do useful work
competitive response
A competitive response is a move that is taken to counter the effects of a competitor’s action.
corporate strategy
The overall scope and direction of a corporation and the way in which its various business operations work together to achieve particular goals.
strategic marketing
Identification of one or more sustainable competitive advantages a firm has in the markets it serves (or intends to serve), and allocation of resources to exploit them.
strategic formulation
Strategy formulation is the process of developing the strategy.
A strategy is a broad plan developed by an organization to take it from where it is to where it wants to be. A well-designed strategy will help an organization reach its maximum level of effectiveness in reaching its goals while constantly allowing it to monitor its environment to adapt the strategy as necessary.
distinctive competence
Distinctive competence of a firm refers to a set of activities or capabilities that a company is able to perform better than its competitors and which gives it an advantage over them. Distinctive competence can lie in different area such as technology, marketing activities, or management capability.
product placement
a form of advertising that involves placing a specific product in a scene (invovles using a named-brand product as a prop)
product integration
similar to product placement, except it involves the actual integration of the product or brand into the script of the tv show or movie (consists of incorporating a product into a character’s dialogue or actions)
pareto principle
The 80/20 Rule means that in anything a few (20 percent) are vital and many(80 percent) are trivial. In Pareto’s case it meant 20 percent of the people owned 80 percent of the wealth.
the economy of scale
-there are cost advantages with the increased output of a product i.e, the greater the quantity of a good produced, the lower the per-unit fixed cost because these costs are shared over a larger number of goods.
scalar principle
A classic management rule where each subordinate reports directly to his senior person and not any higher on the management chain.
synergy
the combined power, profits, etc. that can be achieved by two organizations or groups of people working together rather than separately:
small business investment companies
privately organized and managed investment firms licensed by the U.S. Small Business Administration (SBA) to make equity capital or long-term loans available to small companie
cash flow
the total amount of money being transferred into and out of a business
service businesses
A commercial enterprise that provides work performed in an expert manner by an individual or team for the benefit of its customers. The typical service business provides intangible products, such as accounting, banking, consulting, cleaning, landscaping, education, insurance, treatment, and transportation services.
sales revenue
the amount of money of selling goods or services during a time period
service corps of retired executives (SCORE)
nonprofit association dedicated to entrepreneur education and the formation, growth, and success of small businesses nationwide
(teachers are retired entrepreneurs and executives)
Federal Trade Commission (FTC)
a federal agency that promotes consumer protection and the eliminates and prevents anticompetitive business practices, such as coercive monopoly
Small Business Administration (SBA)
SBA provides small businesses with an array of financing for small businesses from the smallest needs in microlending - to substantial debt and equity investment capital (venture capital).
job analysis
Job Analysis is a process to identify and determine in detail the particular job duties and requirements and the relative importance of these duties for a given job. Job Analysis is a process where judgements are made about data collected on a job.
selection process
Selection is the process of screening applicants to ensure that the most appropriate candidate is hired.
job specification
Job Specification is a statement of the essential components of a job class including a summary of the work to be performed, primary duties and responsibilities, and the minimum qualifications and requirements necessary to perform the essential functions of the job.
job evaluation
A job evaluation is a systematic way of determining the value/worth of a job in relation to other jobs in an organization. It tries to make a systematic comparison between jobs to assess their relative worth for the purpose of establishing a rational pay structure.
screening job applicants
to examine applicants if they are suitable for the job
equal pay act
basically no discrimination between men and women in getting wages
national labor relations act
made to protect the rights of employees, encourage collective bargaining, and to shorten private sector labor and management practices
appraisal
the report card you get
collaratal
property or other assets that a borrower offers to secure a loan
market research
Market research is any organized effort to gather information about target markets or customers.
corporate raiders
In business, a corporate raid refers to buying a large stake in a corporation and then using shareholder voting rights to require the company to undertake novel measures designed to increase the share value, generally in opposition to the desires and practices of the corporation’s current management.
steps of a business plan
1st Step: Growth/Expansion Phase of Business- The business is gradually growing and doing well, catering favorably to an active market. 2nd Step: Peak/Prosperity Phase of Business- Demand not outstripping supply, amount of wealth is high as well as the demand, so thus, the the company begins to raise its prices. After raising prices, greater wages are demanded as well, putting more money into the system.
debt capital
capital raised by a business by taking out loans, which are eventually paid at a later date. Examples: Government loans, bank loans, etc.
what is the most common form source of financing
Most companies are often self financed, if not financed by a secondary source through families and friends.
small business
A small business is a privately owned and operated business. A small business typically has a small number of employees.
a healthy and safety section
a set of laws/rules that relate to health and safety
freelance
-Working on a contract basis for a variety of companies, as opposed to working as an employee for a single company. Freelancers are often considered to be self-employed, and have the freedom to pick and choose their projects and companies they would like to be associated with.
product mix
The assortment of products that are offered by a business.
working capital
the capital of a business that is used in its day-to-day trading operations, calculated as the current assets minus the current liabilities.
balloon note
A long-term loan, often a mortgage, that has one large payment (the balloon payment) due upon maturity. A balloon note will often have the advantage of very low interest payments, thus requiring very little capital outlay during the life of the loan.
capital outlay
Money spent to acquire, maintain, repair, or upgrade capital assets. Capital assets, also known as fixed assets, may include machinery, land, facilities, or other business necessities that are not expended during normal use. Capital outlays, also referred to as capital expenditures, are recorded by accountants as liabilities on company balance sheets.
indirect competition
Competition among the suppliers of different types of products that satisfy the same needs. For example, a pizza shop competes indirectly with a fried chicken shop, but directly with another pizza shop. - pizza and fried chicken both supply people with food
direct competition
Market situation where two or more firms offer essentially the same good or service.
monopolistic competition
Monopolistic competition is a form of imperfect competition where many competing producers sell products that are differentiated from one another (that is, the products are substitutes, but, with differences such as branding, are not exactly alike).
in most
Monopolistically competitive markets have the following characteristics:
There are many producers and many consumers in a given market, and no business has total control over the market price.
Consumers perceive that there are non-price differences among the competitors’ products.
corporation
corporation is an independent legal entity, separate from the people who own, control, and manage it. In other words, corporation and tax laws view the corporation as a legal “person” that can enter into contracts, incur debts, and pay taxes apart from its owners. Other important characteristics also result from the corporation’s separate existence: A corporation does not dissolve when its owners (shareholders) change or die, and the owners of a corporation have limited liability
federal unemployment tax is paid by….
Most employers pay both a Federal and a state unemployment tax
fair credit reporting act
regulates the collection, dissemination, and use of consumer information, including consumer credit information.
equal credit opportunity act
a law that makes it unlawful for any creditor to discriminate against any applicant, with respect to any aspect of a credit transaction, on the basis of race, color, religion, national origin, sex, marital status, or age
civil rights act of 1964
a law that outlawed discrimination based on race, color, religion, sex, or national origin.
fair credit billing act
A federal law designed to protect consumers from unfair credit billing practices. The Fair Credit Billing Act (FCBA) provides guidelines for both consumers and creditors including procedures to manage disputes regarding billing statements. In addition, any interest accrued on the billing error has to be dropped if your claim is confirmed.
SWOT analysis
(stands for strengths, weaknesses, opportunities, and threats)
- an analysis to make sure you’ve considered all of your business’s strengths and weaknesses, as well as the opportunities and threats it faces in the marketplace
chamber of commerce
a local association to promote and protect the interests of the business community in a particular place.
who determines the amount of sales tax that must be charged
City, county, and state governments.
sole proprietorship
one man ownership of business
s corporation
special type of corporation where profits are distributed to stockholders and taxed as personal income
marketing mix
a combination of factors that can be controlled by a company to influence consumers to purchase its products.
marketing plan
primarily establishes how the entrepreneur will effectively compete and operate in the marketplace and thus meet the business goals and objectives
feasibility analysis
Assessing the feasibility of your business idea is an important step before deciding to start your own micro-business. A feasibility analysis helps you to assess the merit of your business idea, determine whether there is a market for your idea, whether the idea is financially viable, and ultimately, whether or not it is worth investing your time and money into the venture.
business strategy
A business strategy typically is a document that clearly articulates the direction a business will pursue and the steps it will take to achieve its goals. In a standard business plan, the business strategy results from goals established to support the stated mission of the business. A typical business strategy is developed in three steps: analysis, integration and implementation.
marketing strategy
Marketing strategy is the goal of increasing sales and achieving a sustainable competitive advantage.
certificate of incorporation ( what is required?)
he name of your corporation
your corporation’s principal place of business
the name and address of your corporation’s registered agent
a statement of the corporation’s purpose
the corporation’s duration
information about the number of shares and classes of stock the corporation is authorized to issue
the names and addresses of the incorporators, or of the initial officers or directors; and
one or more incorporator signatures.
floating ad
-A floating ad is a type of rich media Web advertisement that appears uninitiated, superimposed over a user-requested page, and disappears or becomes unobtrusive after a specific time period (typically 5-30 seconds).
trick banner
A banner ad that attempts to trick people into clicking, often by imitating an operating system message.
Equal Employment Opportunity Act (EEOC
-enforces federal laws prohibiting workplace discrimination
augmented product
A commodity that has both the primary physical attributes and the non-physical attributes that are added to increase the product’s value.
focus group
small group whose opinions about something (such as a politician or a new product) are studied to learn the opinions that can be expected from a larger group
down payment
A payment in part made at the time of purchase of a good, with the promise to make full payment later.
defined benefit plan
A defined benefit plan is a type of pension paid by an employer to a retiring employee, who is promised a specified monthly benefit upon retirement.
defined benefit plan
A defined benefit plan is a type of pension paid by an employer to a retiring employee, who is promised a specified monthly benefit upon retirement.
marginal cost
the cost of producing one more unit of a good
balloon payment
Balloon mortgages are short-term mortgage loans that usually are due and payable within five to 10 years. The payments are calculated as if the balloon mortgage had a longer term of 15 to 30 years. This creates lower monthly mortgage payments but leaves a lump-sum payment when the shorter balloon mortgage term ends. The balloon payment is equal to unpaid principal and interest due when a balloon mortgage becomes due and payable. If the balloon payment isn’t paid when due, the mortgage lender notifies the borrower of the default and may start foreclosure.
Cram down Round
often the final financing opportunity available to entrepreneurs before a company is forced into bankruptcy. Wash-out rounds often occur when companies are unable to achieve performance levels that have been set in order to receive additional financing from investors.
After - tax operating income
A company’s operating income after taxes.
ATOI = Gross Revenue - Operating Expenses - Depreciation - Taxes
