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Business 100 > Test Two Chapt. 5-8 > Flashcards

Test Two Chapt. 5-8 Flashcards

Prepare for second test

1
Q

Which State has the highest tax rates in the country?

A

Wisconsin

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2
Q

What is an S- Corporation?

A

A unique government creation that looks like a corporation but is taxed like a sole proprietorship and partnerships

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3
Q

What is LLC?

A

Limited Liability Company; similar to an S-corporation but without the special eligibility requirements

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4
Q

What is a Merger?

A

The result of two firms forming one company

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5
Q

What is a Vertical Merger?

A

The joining of two companies involved in different stages of related businesses Ex. A soft drink company and an artificial sweetner maker

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6
Q

What is a Horizontal Merger?

A

The joining of two firms in the same industry Ex. A soft drink company and a mineral water company

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7
Q

What is a Conglomerate Merger?

A

The joining of two firms in completely unrealted industries

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8
Q

What is a Franchise?

A

The right to use specific business’s name and sell its products or service in a given territory

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9
Q

What is a Franchisee?

A

A person who buys a franchise

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10
Q

What is a Franchisor?

A

A company that develops a product concept and sells others the rights to make and sell the products

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11
Q

What is a Microprenuer?

A

Entreprenuers willing to accept the risk of starting and managing the type of business that remains small, lets them do the kind of work they want to do and offers a balanced lifestyle

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12
Q

What are the disadvantages of a Sole Proprietorship

A
  1. Unlimited Liability
  2. ) Limited financial resources
  3. ) Management diffuculties
  4. ) Overwhelming time commitment
  5. ) Few fringe benefits
  6. ) Limited growth
  7. ) Limited life span
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13
Q

What are the advantages of a Sole Proprietorship?

A

1.) Ease of starting and ending the business
2.) Being your oen boss
3,) Pride of ownership
4.) Leaving a legacy
5.) Retention of company profit
6.) No special taxes

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14
Q

What are the advantages of a franchise?

A
  1. ) Management/ Marketing Assistance
  2. ) Personal Ownership
  3. ) Nationally recognized name
  4. ) Financial advice and assistance
  5. ) Lower failure rate
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15
Q

What are the disadvantages of a franchise?

A
  1. ) Large start-up cost
  2. ) Shared profit
  3. ) Management regulation
  4. ) Coat-tail effects
  5. ) Restrictions on selling
  6. ) Fraudulent franchisors
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16
Q

What is the coat-tail effect?

A

The actions of other franchises have an impact on your future growth and profitability

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17
Q

What is a home based business?

A

Business based in a home

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18
Q

What are some characteristics of an entreprenuer?

A
  1. ) Self-Directed (Discipline)
  2. ) Self- Nuturing (Believe in yourself)
  3. ) Action-Oriented (Motivated)
  4. ) Highly Energetic
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19
Q

Small Business create ____% new jobs every year

A

70-75

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20
Q

What percent of small business fail in the first four years?

A

44%

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21
Q

What is the SBA?

A

Small Business Association; A U.A government agency that advises and assists small businesses by providing management training and financial advice and loans

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22
Q

What is a business plan?

A

A detailed written statement that describes the nature of the business, the target market, the advantages the business will have in relation to competition, and the resources and qualifications of the owner(s)

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23
Q

What is SCORE?

A

Service Corps of Retired Executives; An SBA office with volunteers from industry, trade associations, and education who counsel small businesses at no cost (except for expenses)

24
Q

What is Venture Capitalist?

A

Individuals or companies that invest in new businesses in exchange for partial ownership of those businesses

25
Q

What should be your first objective before going into business?

A

Finding an unmet need or service

26
Q

What are micro-loans?

A

The extension of very small loans (microloans) to impoverished borrowers who typically lack collateral, steady employment and a verifiable credit history. It is designed not only to support entrepreneurship and alleviate poverty, but also in many cases to empower women and uplift entire communities by extension.

27
Q

What is management (applies to more than just business)

A

The process used to organizational goals through planning, organizing, leading, and controlling people and other organizational resources

28
Q

What are the four f(x)’s of business?

A
  1. ) Planning
  2. ) Leading
  3. ) Organizing
  4. ) Controlling
29
Q

What is planning?

A

Includes anticipating trends and determining the best strategies and tactics to achieve organizational goals and objectives

30
Q

What are the four types of planning?

A
  1. ) Strategic ( setting of broad, long-range goals by top manager)
  2. ) Tactical ( The identification of specific, short-range objectives by lower-level managers)
  3. ) Operational (The setting of work standards and schedules)
  4. ) Contingency ( Back-up plans in case primary plans fail)
31
Q

What is leading?

A

Creating a vision for the organization and guiding, training, coaching, and motivating others to work effectively to achieve the organization’s goals and objectives

32
Q

What is controlling?

A

Establishes clear standards to determine whether an organization is progressing toward its goals and objectives

33
Q

What is decision making?

A

Choosing among two or more alternatives

34
Q

What is PMI?

A

Listing of all the pluses for a solution in one column, all the minuses in another, and the implications in a third

35
Q

Describe the pyramid management style.

A

Levels of management:
Top- Presidents and VP’s
Middle- Managers, division heads, branch managers
Supervisory(1st line) management- Supervisors, foremen, department heads, section leaders
Non-Supervisory- Employees/Associates

36
Q

What are 3 Management skills?

A
  1. ) Technical
  2. ) Human Relations Skills
  3. ) Conceptual Skills
37
Q

What type of manager posses more techinal skillls?

A

First Line Managers

38
Q

What types of manager posses more conceptual skills?

A

Top managers

39
Q

What type of manager posses a balance of all three management skills?

A

Middle Manager

40
Q

What the 3 leadership styles?

A
  1. ) Autocratic
  2. ) Participative
  3. ) Free-rein
41
Q

Describe the autocratic leadership style.

A

Involves making managerial decisions without consulting others.

42
Q

Describe the participative(democratic) leadership style.

A

Leadership tyle that consists of managers and employees working together to make decisions.

43
Q

Describe the free-rein leadership style.

A

Mangers set objectives and employees are free to do whatever is appropiate to accomplish those objectives.

44
Q

Explain the control process.

A

The whole control process is based on clear standards. Without such standards, the other steps are diffucult, if not impossible. With clear standards, performance measurement is relatively easy and the proper action can be taken.

45
Q

What should be done before orgainizing?

A

Determine what work needs to be done

46
Q

Who is Henry Fayole?

A

Introduced several management principles. Still followed today, including the idea that workers should report to only one manager and that managers in turn, should have the right to give orders for others to follow and the power to enforce them.

47
Q

What are Fayoles Principles or orgainization?

A
  1. ) Unity of command
  2. ) Hierarchy of authority
  3. ) Division of labor
  4. ) Subordination of individual interests to the general interests
  5. ) Authority
  6. ) Degree of centralization
48
Q

Explain centralized authority.

A

An organization structure in which decision-making authority is maintained at the top level of management

49
Q

Explain Decentralized authority.

A

An orgainization structure in which decision-making authority is delegated to lower-level managers more familiar with local conditions than headquarters management could be.

50
Q

Who is Max Weber?

A

Max Weber promoted an organizational structure composed of middle managers who implement the orders of top managers. He believed less educated workers were best manged if managers or supervisors gave them strict rules and regulations to follow and monitored their performance

51
Q

What is span of control?

A

The optimal number of subordinates a manager supervises or should supervise

52
Q

Describe line organizations.

A

An organization that has direct two-way lines of respondsibility, authority, and communication running from the top to the bottom of the organization, with all people reporting to only one supervisor

53
Q

Describe line-and-staff organizations.

A

To minimize the disadvantages of simple line organizations, many organizations today have both line and staff personnel

54
Q

What are line personnel responsible for?

A

Directly achieving organizational goals and include production workers, distribution people, and marketing personnel

55
Q

What are staff personnel respondsible for?

A

Advise and assist line personnel in meeting their goals, and include those in marketing research, legal advising, information technology and human resource management

56
Q

Explain benchmarking.

A

Comparing an organization’s practices, processes, and products against the world’s best.

57
Q

Explain informal organization and why its called the grapevine.

A

The system that develops spontaneoulsy as employees meet and form cliques, relationships, and lines of authority outside the formal organization. The informal organization nerve center is the grapevine through unofficial information flows between and among managers and employees.

Business 100 (2 decks)

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