Intro to Business chapter 5 and 6

Partnership

A business owned and controlled by two or more people who have entered into an agreement

Proprietorship

A business owned and run by one person

Policies

Are guidelines used in making consistent decisions

Contingent Worker

One who has no explicit or implicit contract for long term employment

Mission Statement

Short specific written statement of the reason a business exists and what it wants to achieve

Business Plan

a written description of the business idea and how it will be

Which of the following is not one of the common activities of all businesses?

producing goods and services

The form of ownership that gives one person sole control over all business decisions is the

proprietorship

The obligation to complete specific work is

responsibility

After receiving a shipment, the warehouse supervisor and warehouse clerk must check the goods against the shipping invoice to verify that all items have been delivered as required. If the items are satisfactory, the supervisor may take delivery by signing and dating the invoice." The above is an example of a

Procedure

Entrepreneurship

Process of starting, managing, organizing, and assuming the responsibility for a business

Which major category of business is the fastest-growing in the U.S. economy?

Service Business

A competitive advantage that small businesses have over larger businesses is

attention to unique customer needs

Which of the following is not shown on an organizational chart?

job descriptions

Entrepreneur

someone who takes a risk in starting a business to earn a profit

Goal

A precise statement of results the business expects to achieve

Corparation

A separate legal entity formed by documents filed with a state

Partnership Agreement

A written agreement among all owners

Franchise

A written contracting permission to operate a business to sell products and services in a set way

Articles of Incorparation

A written legal document that defines ownership and operating procedures and conditions for the business

Which of the following is not a characteristic of entrepreneurship in the United States?

About 3 percent of people ages 18-64 are involved in entrepreneurship activity.

Small Business

An independent business with fewer than 500 employees

A(n) ____ is a written contract granting permission to operate a business to sell products and services in a set way.

Franchise

A unique business organized by two or more other businesses to operate for a limited time and for a specific project is called a

Joint Venture

About what percentage of U.S. businesses employ more than 100 workers?

Less than 1%

Long term financing

Money needed for the main resources of the business that will last for many years

Short term financing

Money needed to pay for the current operating activities of a business

Start up financing

The amount of money needed to open a business

True or False. All investors in a general partnership have full liability for the debts of the business.

True

Over the next decade, which of the following groups will experience a DECLINE in employment growth rates in the United States?

white non-Hispanic workers

What percentage of the U.S. workforce is made up of contingent workers?

5%

The Small Business Administration considers a business small if it employs fewer than ______ employees.

500

Improvement

A designed change that increases the usefulness of a product, service, or process

Innovation

A designed change that increases the usefulness of a product, service, or process

Organization Chart

A diagram that shows the structure of an organizational, classifications of work and jobs

Small Business Administration

A government agency that helps small business owners develop business plans and obtain financing and other support

True or False. The direction for a business comes from its policies and procedures.

False

Money provided by large investors to finance new products and new businesses that have a good chance to be very profitable is known as

Venture Capital

Procedures

descriptions of the way to work is to be done

True or False. Everyone who owns or manages a business is an entrepreneur.

false

A retailer is an example of a(n)

intermediary

A special form of business organization that combines advantages of a corporation and a partnership is a

limited liability company

Every business performs all of the following activities EXCEPT

manufacturing products

The largest number of U.S. businesses employ

no employees other than the owner

A written legal document defining ownership and operating procedures and conditions for a corporation is called the

Articles of incoorparation

The people who make the major policy and financial decisions in a corporation are the

Board of directors

Intermadiaries

involved in selling the goods and services of producers

Which of the following is not one of the reasons small business fail?

not enough employees to do the work

Service Businesses

offer something intangible, carry out activities that are consumed by its customers

A major advantage of a functional organizational structure is that

people work with others who have the same skills