Intro Ch. 5

a corporation must create corporate ____ that are the operating procedures for the company

bylaws

what percentage of the u.s. workforce is made up of contingent workers? 1% 5% 20% 35%

5%

What are three advantages and disadvantages of a proprietorship?

Advantages: -all profit goes to them -never have to compromise -easiest to start Disadvantages: -all of the responsibility if sued -responsible for all debt -no shelter if business fails

in a(n) ____ corporation, all income is passed through to the owners based on their investment and is taxed on their individual tax returns

S

What is a service business? Give at least three examples of service businesses.

Service business is a business that does activities for the costumers. Some examples include a maid, landscaper, and a chef.

proprietorships are owned and controlled by two or more people who have entered into a written agreement account for the largest percentage of business revenues in the US are the easiest forms of businesses to start protect the liability of the business owners to only the amount of money they have invested directly in the business

are the easiest form of business to start

a written legal document defining ownership and operating procedures and conditions for a corporation is called the corporate code of ethics partnership agreement articles of confederation articles of incorporation

articles of incorporation

the right to make decisions about how responsibilities should be achieved as called liability span of control accountability authority

authority

people born between 1946 and 1964 are generally referred to as bohemians generation x generation y baby boomers

baby boomers

the people who make the major policy and financial decisions for a corporation are called the stockholders owners board of directors partners

board of directors

unity of ____ means that there is a clear reporting relationship for all staff of a business

command

a _____ worker is one who has no explicit or implicit contract for long-term employment

contingent

sometimes a group of people forms a(n) _____ to provide goods and services that they all need, it is owned by members, serves their needs, and is managed by the internet

cooperative

a business formed as a(n) ______ is a separate legal entity formed by documents filed with the state

corporation

of the MAJOR forms business ownership in the US, the most difficult to form is partnership franchise corporation proprietorship

corporation

A business that takes resources from nature for direct consumption or for use in developing other products is a specific type of producer called a(n) _______

extractor

most businesses fail in the

first year

a(n) _____ is a written contract granting permission to operate a business to sell products and services in a set way license cooperative agreement partnership franchise

franchise

what kind of chart is most common

functional

a precise statement of results a business expects to achieve is a mission statement goal policy procedure

goal

_____ are businesses involved in selling the goods and services of producers for customers and other businesses

intermediaries

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 limited liability partnership limited liability company nonprofit corporation

joint venture

corporations could be

large or small

about what percentage of u.s. businesses employ more than 100 workers? less than 1% 5% 20% 35%

less than 1%

a(n) ___ liability company combines the best features of a partnership and a corporation and provides liability protection for owners

limited

business..

make products and preform services

every business performs all of the following activities EXCEPT maintaining business records manufacturing products raising capital buying goods and services

manufacturing products

_____ activities are directed at providing the goods and services wanted by a business's customers

marketing

in a(n) _____ organization structure, work is structured around specific projects, products, or customer graphs

matrix

a(n) _____ statement is a short, specific, written statement of the reason a business exists and what it wants to achieve

mission

span of control

number of employees who are assigned to a particular work task

largest number of US businesses are

owner-operated with no employees

a major advantage of a functional organizational structure is that people work with others who have the same skills all of the people with similar jobs will be paid the same salary people working in one function have little interactions with people in other parts of the business people often become more focused on their specific function than on the success of the whole business

people work with others who have the same skills

which of the following type of business is NOT a producer? pharmacy appliance factory coal mine chicken farm

pharmacy

_____ are guidelines used in making consistent decisions

policies

"After receiving a shipment, a warehouse supervisor and warehouse clark 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 policy goal mission statement procedure

procedure

business activities start with service businesses producers intermediaries marketers

producers

A(n) ____ is a business owned and run by just one person

proprietorship

Distinguish between responsibility, authority, and accountability?

responsibility-job you should do for the work authority- right to make decisions regarding the job accountability- responsibilities for results

which major category of business is the fastest growing in the U.S. economy? producer manufacturer intermediary service business

service business

which of the following would typically NOT be specified in a partnership agreement? the business name the number of hours per week the business will operate the amount of investment of each partner the level of authority each partner has

the number of hours per week the business will operate

employees at the trexel company are frequently confused about their assignments and many employees are unclear about who exactly they report to. Trexel company does not seem to provide an adequate mission statement span of control unity of command matrix structure

unity of command

over the next decade, which of the following groups will experience a DECLINE in employment growth rates in the United States asian-american workers hispanic-american workers white non-hispanic workers african-american workers

white non-hispanic workers