Small Business Management Chapter 17 and 18

design patent

a 14 year patent for a new original and ornamental design for an article of manufacture

utility patent

a 20 year patent covering a process, machine, article of manufacture, composition of matter, or any new or useful improvement of an existing one

plant patent

a 20 year patent that covers new strains of living plant organisms, algae, or macro fungi

hourly fees

a basis for legal charges in which the rate is based on a price per hour

legal entity

a being, human or nonhuman, such as a corporation, that is recognized as having rights and duties such as the right to own property.

subcontract

a contract by which a new party agrees to perform a duty that one of the original parties to a contract was already legally obligated to perform

arbitration

a dispute resolution process held instead of court cases in which both sides present their case to a legal professional

The best way to confront legal issues

confront potential problems before they have a chance to get serious

third most popular start up

corporation

job description

defines and discusses all the essential knowledge, skills, and abilities that are needed to fill a position

on the job training

delivered to employees while they perform their regular jobs techniques include orientations, job instruction training, apprenticeships, internships and assistanceships, job rotation, and coaching

intellectual property

property coming from some sort of original thought; for example, patents, trade secrets, trademarks and copyrights

sarbanes-oxley act

a federal law describing the steps publicly traded businesses must take to protect and provide their key financial info

Retainer

a fee paid by a client to an attorney to engage the attorney's services

litigation

a formal dispute resolution method that operates using the court system, typically with a lawyer representing each party

patent

a grant by the US government to an inventor for an idea that is new, useful, and non obvious, giving the inventor the exclusive right to make, use, or sell his idea

Flat fees

a method of billing for lawyers in which a fixed amount is paid for a certain task

hold harmless

a type of waiver in which a party agrees not to hold another party responsible for certain events

open book policy

concept that key employees should be able to see and understand a firm's financials should have a part in moving numbers in the right direction should have a direct stake in the strategy and success of the firm

meritocracy

management philosophy of selecting and promoting people base solely on their being the most capable person for the job

perk

perquisite priviledges, services, or even tangible items given to employees as part of overall compensation and benefits package

independent contractors

persons working to achieve a certain goal without being subjected to substantial controls by another

501(c)(3)

section of US tax code that specifies the conditions for nonprofits to be certified tax exempt

Most popular form of start ups

sole proprietorship

infriger

someone who uses intellectual property without the permission of the owner

crafting a job description

start with title job overview define duties and responsibilities knowledge, skills, and abilities credentials and experience special requirements

articles of partnership

agreement between the partners of of firm on matters pertaining to the formation and operation of the partnership

living wage

amount needed for a person or family to meet the basic necessities of life from a single job

Employee referral

an underused, low cost method for finding workers that rewards your employees for recommending potential candidates that would be a great employee fit

Advantages of corporations

can have representation management ease of raising large amounts of capital legal entity separate and distinct from its owners as individuals relatively permanent, since life of firm not affected by loss of any shareholder owners' liability for the firm's debt limited to their investment in it

standard contracts

company can just fill in the blanks as needed

psychological contract

employees' beliefs about the promises between employee and firm based on perception that promises have been made in exchange for certain employee obligations

copyright

exclusive right given to the creator of a literary or artistic work to make use of that work

second most popular start up

general partnership

Employee fit

match between the needs, expectations, and culture of the small business with the expectations and the skills of the individual employee

Internet recruiting

method of recruiting that allows you to search a resume database or post a job description to the web

Advantages of sole proprietership

secrecy unique tax advantages owner doesn't have to share profits relative freedom of action and control easiest and simplest form to organize, operate, and dissolve

pass through

taxation earnings of business are distributed to the owners and those owners pay individual tax on the earnings

Probationary period

trial period in which an employee has temporary status before a formal offer to work full time is presented

Job analysis

job task of job critical tasks critical competencies

faactors most valuable to employees

teamwork recognition training empowerment contribution

specialty contracts

unique contract terms, large dollar amounts at stake

Small claims work work when

you can prove it and have exhausted other procedures like calls and letters to the customer

nonprofit corporation

a business form specific to charitable organizations

disadvantages of sole proprietorship

limited capital difficulty in obtaining credit inadequate management and employee skills unlimited liability for the firm's debts limited life because business and owner are legally the same

nepotism

management philosophy of selecting and promoting people base on family ties

check the box taxation

a choice LLCs can make on their tax returns to be taxed as a corporation or a partnership

entrepreneurial leadership

administration with task and person

contracts

agreements in which the parties exchange promises

trade name

assumed, doing business as name under which a business is operated

Characteristics of an independent contractor

behavioral-contractor solely decides how the work is to be done financial-pays his own expenses relational-independent contractor employed for a project and the service the contractor provides is not central to the operation of the business

compensation, benefits, perks

bonuses long term incentives health insurance retirement plans perks

trade secret

confidential info within a company that gives that company a competitive advantage

trademark

distinctive word, slogan, or image that identifies a product and its origins

articles of organization

document setting forth info about a limited liability company that is filed with the state to establish an LLC

single taxation

earnings of the business are taxed once with the owners paying the taxes

double taxation

earnings of the business are taxed twice with the business as well as its owners being subject to tax

Advantages of partnerships

easy to form division of labor and management responsibility can use ideas and plans of more than one person specialized skills available from individual partners can raise more capital since good credit may be available obtain financial resources from more than one person

nonexempt

federal government descriptor of employees under the Fair Labor Standards Act who get an hourly wage and time-and-half for overtime

Exempt

federal government descriptor of employees who are exempt from the Fair Labor Standards Act and are generally paid salaries

Contingency fee

fee paid by a client to an attorney for legal services that is dependent upon the outcome of a case

Assumed name filing or a fictious name filing

filing made with a state in which the business operates disclosing the trade name of business along with the owners of the business

3 elements to most aspects of business law

finding the right info negotiating specific outcome you want taing care of paperwork associated with it

Guideleines for training

give your employees opportunities to use their new skills make training an ongoing process think of training as an investment as opposed to an expense

scope of authority argument

if employees make a decision requiring more authority than they really possess, the business can argue that it was not lo=iable for the problem, firm must fully train employees of the exact authority they possess

disadvantages of corporations

impersonal owners have limited interest in firm's activities except profits high incorporation fees and taxes, especially double income taxation burdensome procedures, reports, and statements required by governments powers limited to those stated in charters- may be difficult to do business in another state

off the job

includes lectures, special study, videos, television, conferences, case studies, role playing, simulation, programmed instruction, and laboratory training

virtual employees

independent contractors who provide specialized business services or support from a distance, through the internet, telephone, fax, or another method of communication

vicarious liability

indirect liability or responsibility for the actions of another

components of chief executive entrepreneurial leadership

innovation operation inspiration

disadvantages of partnerships

limited life unlimited liability for debts of the firm each partner responsible for acts of every other partner an impasse may develop if the partners become incompatible death of any one of the partners terminates the partnership a partner cannot obtain bonding protection against the acts of the other partner

Can see 501(c)(3) status from IRS which permits donations to be tax deductible

nonprofit corporations

exculpatory clause

part of a contract in which a party to the contract states that he or she will not be responsible for certain actions

noncompete clause

part of a contract in which a person agrees not to open a certain type of business or see employment doing certain things in a particular area for a period of time

six major factors at play for choosing a business

personal liability of owner taxation of both the entity and its owners complexity and organizational costs in setting up control of business ability of business to raise capital

right level of paranoia

plan to do good check with a lawyer early on recognize the predictable surprises of business and life manage risks

4 steps to structure a negotiation

prepare what you need to achieve position by putting your best foot forward propose solutions that provide value and balance pounce when agreement on any part of the negotiation appears at hand

intangible property

property that has no value of its own but that represents value, such as a stock certificate

mediation

the dispute is put to a neutral third party who is not a judge

piercing the veil

the dissolution of a corporate form, making it back into a sole proprietorship or general partnership, if the court finds that the owner carelessly mixed up personal and business assets or finances

waiver

part of a contract in which a party intentionally gives up legal rights or claims

small claims courts

when you are owed money, can prove it