intro to business chapter 5, 6, 7, 8

S corporation

a unique government creation that looks like a corporatin but is taxed like sole proprietorships and partnerships

organization chart

a visual device that shows relationships among people and divides the organization's work; it shows who reports to whom

entrepreneurship

accepting the risk of starting and running a business

franchise agreement

an arrangement whereby someone with a good idea for a business sells the rights to use the business name and sell a product or service to others in a given territory

vision

an encompassing explanation of why the organization exists and where it's trying to head

mission statement

an outline of the fundamental purposes of an organization

benchmarking

comparing an organization's practices, processes, and products against the world's best

leading

creating a vision for the organization and guiding, training, coaching, and motivating others to work effectively to chieve the organization's goals and objectives

enabling

giving workers he education and tools they need to make decisions

venture capitalists

individuals or companies that invest in new businesses in exchane for partial ownership of those businesses

participative (democratic) leadership

leadership style that consists of managers and employees working together to make decisions

free-rein leadership

leadership style that involves managers setting objectives and employees being relatively free to do whatever it takes to accomplish those objectives

acquisition

one company's purchase of the property and obligations of another company

chain of command

the line of authority that movs from the top of a hierarchy to the lowest level

strategic planning

the process of determining the major goals of the organization and the policies and strategies for obtaining and using resources to achieve those goals

management

the process used to accomplish organizational goals through planning organizing, leading, and controlling peopel and other organizational resources

unlimited liability

the responsibility of business owners for all of the debts of the business

merger

the result of two firms forming one company

franchise

the right to use a specific business's name and sell its products or services in a given territory

economies of scale

the situation in which companies can reduce their production costs if they can purchase raw materials in bulk; the average cost of goods goes down as production levels increase

networking

using communications technology and other means to link organizations and allow them to work together on common objectives

digital natives

young people who have grown up using the internet and social networking

goals

the broad, long-term accomplishments an organization wishes to attain

departmentalization

the dividing of organizational functions into separate units

small business

a business that is independently owned and operated, is not dominant in its field of operation, and meets certain standards of size (set by the small Business Administration) in terms of employees or annual receipts

sole proprietorship

a business that is owned, and usually managed, by one person

limited liability

a company similar to an S corporation but without the special eligibility requirements

franchisor

a company that develops a product concept and sells others the rights to make and sell the products

business plan

a detailed written statement that describes the nature of the business the target market, the advantages the business will have in relation to competition, and the resources and qualifications of the owner(s)

corporation

a legal entity with authority to act and have liability apart from its owners

partnership

a legal form of business with two or more owners

planning

a management function that includes anticipating trends and determining the best strategies and tactics to achieve organizational goals and objectives

organizing

a management function that includes designing the structure of the organization and creating conditions and systems in which everyone and everything work togther to ahieve the organization's goals and objectives

staffing

a management function that includes hiring, motivating, and retaining the best people available to accomplish the company's objectives

controlling

a management function that involves establishing clear standards to determine whether or not an organization is progressing toward its goals and objectives, rewarding people for deing a good job, and taking corrective action if they are not

general partnership

a partnership in which all oweners share in operating the business and in assuming liability for the business's debts

franchisee

a person who buys a franchise

SWOT analysis

a planning tool used to analyze an organization's strengths, weaknesses, opportunities, and threats

conventional (c) corporation

a state-chartered legal entity with authority to act and have liablilty separate from its owners

hierarchy

a system in which one person is at the top of the organization and there is a ranked or sequential ordering from the top down of managers who are responsible to that person

market

people with unsatisfied wants and needs who have both the resources and the willingness to buy

human relations skills

skills that involve communication and motivation; they enable managers to work through and with people

technical skills

skills that involve the ability to perform tasks in a specific discipline or deparment

conceptual skills

skills that involve the ability to picture the organization as a whole and the relationship among its various parts

objectives

specific, short-term statements detailing how to achieve the organization's goals