Intro to 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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Baby boomers
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people born between 1946 and 1964.
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Board of directors
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the people who make the major policy and financial decisions for the business.
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Contingent worker
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one who has no explicit or implicit contract for long-term employment.
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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. It is owned by members, serves their needs, and is managed in their interest.
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Corporate bylaws
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the operating procedures for the corporation.
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Corporation
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a separate legal entity formed by documents filed with a state. It is owned by one or more shareholders and managed by a board of directors.
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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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Farmers
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people who cultivate land and use other natural resources to grow crops and raise livestock for consumption.
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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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Franchisee
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the company purchasing the rights to run the business.
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Franchiser
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the company that owns the product or service and grants the rights to another business.
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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 by two or more other businesses to operate for a limited time and for a specific project. It is a type of partnership.
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Limited liability company (LLC)
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form of business ownership that 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 simple document much like a partnership agreement must be developed.
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Limited liability partnership (LLP)
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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.
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Manufacturers
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businesses that get supplies from other producers and convert them into products. They sell their products to consumers and other businesses.
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Mission statement
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short, specific written statement of the reason a business exists and what it wants to achieve.
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Nonprofit corporation
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a group of people who join to do some activity that benefits the public.
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Organization chart
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a diagram that shows the structure of an organization, classifications of work and jobs, and the relationships among those classifications.
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Partnership
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a business owned and controlled by two or more people who have entered into a written agreement.
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Partnership agreement
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a written agreement among all owners detailing the rules and procedures that guide ownership and operations.
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Policies
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guidelines used in making consistent decisions.
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Procedure
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a list of steps to be followed for performing a particular work activity; a description of the way work is to be done.
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Producers
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individuals and organizations that determine what products and services will be available for sale.
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Proprietorship
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a business owned and run by just one person.
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Responsibility
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the obligation to complete specific work.
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S corporation
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a corporate form of business that offers the limited liability of a corporation.
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Service business
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a business that carries out activities that are consumed by its customers.
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Span of control
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the number of employees who are assigned to a particular work task and manager.
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Unity of command
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a clear reporting relationship for all staff of a business.
