Introduction to Business: Business Organization – Flashcards
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Sole proprietorship
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A business owned and run by just one person
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Partnership
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A business owned and controlled by two or more people who have entered into an agreement
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Corporation
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A separate legal entity formed by documents filed with a state (owned by one or more shareholders and managed by a board of directors)
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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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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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Corporate bylaws
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The operating procedures for the corporation
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Board of directors
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The people who will make the major policy and financial decisions for the business
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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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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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Franchiser
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The company that owns the product or service and grants the rights to another business
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Franchisee
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The company purchasing the rights to run the business
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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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Limited liability company (LLC)
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Form of business ownership that provides liability protection for owners (simpler set of organizing and operating requirements than a corporation, no articles of incorporation or bylaws needed, simple document much like a partnership agreement must be developed)
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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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Cooperative
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A business formed to market products produced by members or to purchase products needed by the members (owned by members, serves their needs, managed in their interest)
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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
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Baby boomers
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People born between 1946 and 1964
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Contingent worker
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One who has no explicit or implicit contract for long-term employent
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Producers
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Individuals and organizations that create the products and services used by individuals and other businesses (determine what products and services will be available for sale)
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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 (Pump oil, mine coal, cut timber)
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Farmers
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People who cultivate land and use other natural resources to grow crops and raise livstock for consumption
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Manufacturers
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Businesses that get supplies from other producers and convert them into products, then sell their products to consumers and other businesses
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Intermediary
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Businesses involved in selling the goods and services of producers to consumers and other businesses
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Service business
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A business that carries out activities that are consumed by its costumers
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Mission statement
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A short, specific written statement of the reason a business exists and what it wants to achieve
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Goal
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A precise statement of result the business expects to achieve
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Policies
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Guidelines used in making consistent decisions
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Procedures
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Descriptions of the way work is to be done
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Responsibility
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The obligation to complete specific work
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Authority
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The right to make decisions about how responsibilities should be accomplished
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Accountability
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Taking responsibility for the results achieved
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Unity of command
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There is a clear reporting relationship for all staff of a business
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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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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 clasifications
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Dividend
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Payments of profits in cash to stockholders
