Test #2 Flashcards
Acquisition
One company is purchased by another
Articles of Partnership
Legal documents that set the basic agreement between partners
Board of Directors
A group of individuals, elected by shareholders, to oversee the general operation of a corporation
Common Share
Owners have voting rights in the corporation
Cooperative (Co-Op)
An organized composed of individuals or businesses that have banded together to reap the benefits of belonging to a larger organization
Crown Corporations
Owned and operated by federal, provincial, or local government
Dividends
Profits of a corporation
General Partnership
Partnership involves sharing in management and liability
Initial Public Offering (IPO)
Selling corporation’s shares on public markets for the first time
Joint Venture
A partnership made for a specific project or for a limited time
Leveraged Buyout (LBO)
Investors borrow money from banks to acquire a company and use the assets of the company to guarantee repayment of the loan
Limited Partnership
Has at least one general partner who assumes unlimited liability, and one limited partner whose liability is limited to their investment
Merger
Combination of two companies to form a new company
Nonprofit Corporation
Focus on providing a service rather than earning profit
Partnership
An association of two or more persons who are co-owners of a business
Partnership Agreement
Legal agreement that outlines a business relationship
Preferred Shares
Type of share where owners have a claim to profits before other shareholders do
Private Corporation
Owned by just one or a few people who are closely involved in management of business
Public Corporation
Anyone can buy, sell, or trade the shares
Sole Proprietorships
Businesses owned by one person (most common form of business in Canada)
Business Plan
Step-by-step plan of how business will achieve its goals
Corporation
Legal entity with authority to act and have liability separate from its owners
Entreprenership
Creating and managing a business to achieve goals
Franchise
License to sell another’s products or to use another’s name in business
Franchisee
The purchaser of a franchise
Franchiser
The company that sells a franchise
Intrapeneurs
Individuals who are responsible for the creation of innovations within an organization
Small Business
Any independently owned and operated business that does not employ more than 500 people
Undercapitalization
Lack of funds to operate a business
Administrative Managers
Manage an entire business and coordinate the activities of specialized managers
Conceptual Skills
Ability to see how parts fit together to form a whole
Controlling
Evaluating and correcting activities to keep the organization on course
Directing
Motivating and leading employees to achieve objectives
Downsizing
Elimination of a significant number of employees
Financial Managers
Focus on obtaining the funds needed for the success of an organization
First-Line Managers
Supervise workers and daily operations
Human Relations Skills
Ability to deal with people both inside and outside of the organization
Human Resources Managers
Handle the staffing and deal with employees in a formalized manner
Information Technology (IT) Managers
Implement, maintain, and control technology applications
Leadership
Ability to influence employees to work towards a goal
Managers
Individuals who make decisions about the use of resources
Marketing Managers
Responsible for planning, pricing, and promoting products
Middle Managers
Responsible for the tactical planning
Operational Plans
Very short-term plans that determine what needs to be completed in order to achieve tactical plan
Organizing
Structuring of resources and activities to accomplish goals
Planning
Determining the goals and deciding how to accomplish them
Production and Operations Managers
Develop and administer the activities involved in transforming resources into goods
Staffing
Hiring of people to work for an organization
Strategic Plans
Establish long-term objectives
Tactical Plans
Short-range plans designed to complete goals stated in the strategic plan
Technical Expertise
Specialized knowledge and training needed to perform jobs
Top Managers
President and other top executives (CEO, CFO, COO)
Three Types of Partnerships
- general
- limited
- limited liability (LLP)
Three Types of Corporations
- private
- public
- initial public offering (IPO)
