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
