Management Ch. 5 – Flashcards
Unlock all answers in this set
Unlock answersquestion
Franchising
answer
Contract-based business arrangement between a manufacturer or other supplier, and a dealer
question
Franchisee
answer
The individual or business firm purchasing a franchise
question
Common Shares
answer
Shares that give owners voting rights but only residual claims to the firm's assets and income distributions
question
Board of Directors
answer
Sets overall policy, authorizes the corporation's major transactions, and hires the chief executive officer
question
Franchisor
answer
The firm whose products are sold to customers by the franchisee
question
Sole Proprietorship
answer
A form of business ownership that is least subject to legal red tape
question
Business Plan
answer
A formal document that details a company's goals, methods, and standards
question
Business Development Back of Canada (BDC)
answer
Governmental agency that assists, councels, and protects the interests of small business in Canada
question
Small Business
answer
Independent business with fewer than 100 employees and revenue less than 2 million
question
Causes of small business failuer
answer
Management shortcomings, Inadequate financing, and government regulation
question
Preferred stock
answer
Owners of ____ have limited voting rights, but are entitled to the earliest dividends
question
Vertical merger
answer
Merger that combines firms operating at different levels in the production and marketing process
question
Horizontal merger
answer
Merger that joins forms in the same industry for the purpose of diversification, increasing customer bases, cutting costs, or expanding product lines
question
Conglomerate merger
answer
Merger that combines unrelated firms, usually with the goal of diversification, increasing sales, or spending a cash surplus to avoid a take over attempt
question
Joint venture
answer
Partnership between companies for a specific activity
question
Non-for-profit corportaion
answer
Organizations whose goals do no include pursuing a profit
question
Shareholders
answer
Owners of a corporation as a result of their purchase of shares in the corporation
question
Partnership
answer
An association of two or more persons who operate a business as co-owners by voluntary legal agreement
question
Corpration
answer
The form of business ownership that establishes the firm as a separate legal entity
question
Business incubator
answer
A local program designed to provide low-cost, shared business facilities to small start-up companies
question
Venture capital
answer
Money invested in a business by another business or a group of individuals on return for an ownership share
question
Merger
answer
An agreement in which two or more firms combine to form one company
question
Acquisition
answer
An agreement when one firm purchases the property and consumes the obligations of another firm
