Intro To Business Chapter 5

Franchisor

Supplies brand names, techniques, or services instead of a complete product

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.

Franchisor

A person or organization purchasing a franchise

Manufacturer

Authorizes retailers to sell a certain brand-name item

Production

Construction, mining, and manufacturing (about 19% of all small businesses)

Producer

Licenses distributors to sell a product to retailers

Regular Business Loans

Loans are made by private banks but are partially guaranteed by SBA

Distribution

Retailing, wholesaling, transportation, and communications (about 33% of all small businesses)

Business plan

a carefully constructed guide for the person starting a business

Small Business Administration (SBA)

a governmental agency that assists, counsels, and protects the interests of small businesses in the United States

Franchise

a license to operate an individually owned business as though it were part of a chain of outlets or stores

Service

medical or dental care; watch, shoe, and TV repairs; haircutting; restaurant meals; dry cleaning; financial services (over 48% of all small businesses)

venture capital

money invested in small firms that have the potential to become very successful

Small business investment companies

privately owned firms that provide venture capital to small enterprises that meet their investment standards

Franchising

the actual granting of a franchise