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
