Principles of Business Chapter 5 Vocab

Flashcard maker : Lily Taylor
Accountability
taking responsibility for the results achieved
Articles of Incorporation
a written legal document that defines ownership and operating procedures and conditions for the business
Authority
the right to make decisions about how responsibilities should be accomplished
Bylaws
a rule made by a company or society to control the actions of its members
Chain of Command
a hierarchy of authority where those at the top of the organization direct and control the activities of the organizational members below them
Cooperative
a business formed to market products produced by members or to purchase products needed by the members
Corporation
a separate legal entity formed by documents filed with a state
Extractor
a business that takes resources from nature for direct consumption or for use in developing other products
Franchise
a written contract granting permission to operate a business to sell products and services in a set way
Goal
a precise statement of results the business expects to achieve
Intermediaries
businesses involved in selling the goods and services of producers to consumers and other businesses
Joint Venture
a unique business organized two or more other businesses to operate for a limited time and for a specific project
Liability
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.
Limited Liability
A form of business ownership in which the owners are liable only up to the amount of their individual investments.
Limited Liability Company (LLC)
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.
Limited Liability Partnership (LLP)
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.
Marketing
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
Matrix
(n.) a mold; the surrounding situation or environmen
Mission Statement
A brief summary of what a business owner wants a business to be doing.
Organization Chart
A visual device that shows relationships among people and divides the organization’s work; it shows who reports to whom.
Partnership
A business in which two or more persons combine their assets and skills
Partnership Agreement
A written agreement among all owners
Policies
guidelines used in making consistent decisions
Procedures
An established or official way of doing something
Proprietorship
A business owned by one person
S Corporation
A unique government creation that looks like a corporation but is taxed like sole proprietorships and partnerships
Service Business
A business that performs an activity for a fee
Span of Control
Refers to the number of individuals who report to a supervisor.
Unity of Command
A management principle that workers should report to just one boss
Contingent Worker

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