EMS Chapter 4
A business owned and controlled by just one person
Proprietorship
A competitive advantage small businesses have over large businesses
Small businesses fill niches that their larger competitors often overlook and can serve customers more directly and with greater flexibility than their larger competitors
A written description of the business idea and how it will be carried out
business plan
The process of starting, organizing, managing, and assuming the responsibility for a business
entrepreneurship
A written contract granting permission to operate a business to sell to sell products and services in a prescribed way
franchise
A specific statement of results the business expects to achieve.
goal
A design change that increases the usefulness of a product, service, or process.
improvement
Someone who takes a risk in starting a business to earn a profit
entrepreneur
A written legal document that identifies ownership and operating procedures and conditions for the business
articles of incorporation
The difference between a country's total payments to other countries and it's total receipts from other countries
balance of payments
The people who make the major policy and financial decisions in a corporation are
board of directors
One who has no explicit or implicit contract for long term employment
contingent worker
A separate legal entity formed by documents filed with the state, which is owned by one or more shareholders and managed by a board of directors
corporation
A nation's transportation, communication and utility system
infrastructure
An invention or creation that is brand new
innovation
Businesses involved in selling the goods and servicers of producers to consumers and other businesses
intermediary
Money needed for the important resources of a business that will last for many years
long-term financing
A short specific written statement of the reason a business exists and what it wants to accomplish
mission statement
A business owned and controlled by two or more people who have entered into a written agreement
partnership
A written agreement among all owners that specifies the rules and procedures that guide ownership and operations
partnership agreement
Guidelines used in making consistent decisions
policies
Descriptions of the way work is to be done
procedures
The obligation to complete specific work
responsibility
A business that completes activities that are consumed by customers rather than offers products for sale.
service business
The current money needed to pay for the current operating activities of a business
short-term financing
An independent business with fewer than 500 employees
small business
A government agency that helps small business owners develop business plans
small business administration (SBA)
The amount of money needed to open a business
start-up financing