Principles of Business Chapter 5 Vocab – Flashcards
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Accountability
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taking responsibility for the results achieved
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Articles of Incorporation
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a written legal document that defines ownership and operating procedures and conditions for the business
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Authority
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the right to make decisions about how responsibilities should be accomplished
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Bylaws
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a rule made by a company or society to control the actions of its members
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Chain of Command
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a hierarchy of authority where those at the top of the organization direct and control the activities of the organizational members below them
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Cooperative
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a business formed to market products produced by members or to purchase products needed by the members
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Corporation
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a separate legal entity formed by documents filed with a state
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Extractor
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a business that takes resources from nature for direct consumption or for use in developing other products
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Franchise
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a written contract granting permission to operate a business to sell products and services in a set way
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Goal
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a precise statement of results the business expects to achieve
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Intermediaries
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businesses involved in selling the goods and services of producers to consumers and other businesses
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Joint Venture
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a unique business organized two or more other businesses to operate for a limited time and for a specific project
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Liability
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A claim against the assets, or legal obligations of a person or organization, arising out of past or current transactions or actions. Liabilities require mandatory transfer of assets, or provision of services, at specified dates or in determinable future.
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Limited Liability
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A form of business ownership in which the owners are liable only up to the amount of their individual investments.
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Limited Liability Company (LLC)
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Corporation whose members are not personally liable for company debts and whose earnings are taxed only once, when they are paid out as dividends. It has fewer rules and restrictions than does an S-corporation.
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Limited Liability Partnership (LLP)
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US partnership in which no partner is liable for the negligent acts of any or all other partners or those of employee(s) not under his or her command.
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Marketing
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An organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders
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Matrix
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(n.) a mold; the surrounding situation or environmen
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Mission Statement
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A brief summary of what a business owner wants a business to be doing.
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Organization Chart
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A visual device that shows relationships among people and divides the organization's work; it shows who reports to whom.
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Partnership
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A business in which two or more persons combine their assets and skills
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Partnership Agreement
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A written agreement among all owners
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Policies
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guidelines used in making consistent decisions
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Procedures
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An established or official way of doing something
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Proprietorship
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A business owned by one person
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S Corporation
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A unique government creation that looks like a corporation but is taxed like sole proprietorships and partnerships
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Service Business
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A business that performs an activity for a fee
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Span of Control
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Refers to the number of individuals who report to a supervisor.
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Unity of Command
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A management principle that workers should report to just one boss
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Contingent Worker
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