Shared Flashcard Set

Details

Business Foundation
Chapter 5, 6, 7
99
Business
03/23/2010

Additional Business Flashcards

 


 

Cards

Term
Small Business
Definition
firm that is independently owned and operated, is not dominant in its field, and meets industry-specific size standards for income or numbers of employees. 
Term
Business Plan
Definition
Written document that provides an orderly statement of a company's goals the methods by which it intends to achieve those goals, and the standards by which it will measure achievements.
Term

Small Business Administration

(SBA)

 

Definition
Federal agency that aids small businesses by providing management training and consulting, financial assistance, and support in securing.
Term
Business Incubator
Definition
Organization that provides temporary low-cost, shared facilities to small start-up ventures.
Term
Franchising 
Definition
Contractual agreement that specifies the methods by which a dealer can produce and market a supplier's good or service.
Term
Sole Proprietorship
Definition
Form of business ownership in which the company is owned and operated  by one person. 
Term
Partnership
Definition
Form of business ownership in which the company is operated by two or more people who are co-owners by voluntary legal agreement.
Term
 Corporation 
Definition
Business that stands as a legal entity with assets and liabilities separated from those of its owner(s).
Term
Stockholder
Definition
Person or organization who owns shares of stock in a corporation.
Term
Board of directors
Definition
Elected governing body of a corporation. 
Term
Merger
Definition
Combination of two or more firms to form one company.
Term
Acquisition 
Definition
Procedure in which one firm purchases the property and assumes the obligations of another. 
Term
What characteristics does the SBA use to determine whether a business is a small Business?
Definition
Number of employees, Annual sales, and Independently Own and not dominant in its field.
Term
Identify three industries in which small businesses are common.
Definition
 Construction, wholesale, retail, and service industries.
Term
To What extent do small business help create new jobs?
Definition
On average, three of four new jobs are created by small business.
Term
In what ways do small businesses contribute to the economy?
Definition
Small businesses create new jobs, new industries, and innovation goods and services.
Term
What percentage of small business will still be in business two, four, six , and ten years after starting?
Definition
one-third, 50 percent, 62 percent, and 82 percent of small business will have failed within two, four, six, and ten years, respectively. 
Term
How do management shortcomings, inadequate financing, and government regulation make small businesses more likely to fail?
Definition
Lack of business expertise and experience needed, Inadequate financing, Government regulation.
Term
What components should be part of a good business plan?
Definition
 Executive Summary, and introduction, separate financial, and marketing sections, and the resumes of the principals.
Term
What are the various ways and methods by which the SBA helps small business with financing and getting government contracts?
Definition
The SBA guarantees business loans: helps small businesses compete for government set-aside programs; and provides business information, advice, and training.
Term
Distinguish between a franchisor and a franchisee.
Definition
Franchisor permits franchisees to use their business name and to sell their business's goods and services. Franchisors also provide franchisees a variety of marketing, management, and other services in return for various fees and a percentage of the franchisees sales 
Term
What are the benefits and problems of franchising?
Definition
Prior performance record, a recognizable company name , a business model that has proven successful in other location, a tested management program, and business training for the franchisees. Fee payments can be expensive, linked to reputation and management.
Term
Definition
Term
Home-Based Business
Definition
Firms operated from the residence of the business owner.
Term
Micro-loans
Definition
Small Business Administration-guaranteed loans of up to $35,000 made to start-up and other very small firms.
Term

Small Business Investment Company

 

(SBIC)

Definition
Business licensed by the small business administration to provide loans to small businesses.
Term
Set-aside program
Definition
Component of a government contract specifying that certain government contracts (Or portions of those contracts) are restricted to small businesses and/or to women or minority-owned companies.
Term
Franchisee
Definition
Small-business owner who contracts to sell the good or service of a supplier (the franchisor) in exchange for a payment (usually a flat fee plus a percentage of sales).
Term
Franchisor
Definition
Business owner who permits the franchisee to sell its products and use its name, as well as providing a variety of marketing, management, and other services in return for the payment of various fees and a percentage of sales
Term
S Corporation 
Definition
Modified form of the traditional corporate structure often used by firms with fewer than 100 shareholders; such businesses can elect to pay federal income taxes as partnerships while retaining the liability limitations typical of corporations.
Term

Limited-Liability Company

 

(LLC)

Definition
legal form of organization allowing business owners to secure the corporate advantage of limited liability while avoiding the double taxation characteristic of corporations. 
Term
Domestic Corporation 
Definition
Process of reducing the number of employees within a firm by elimination jobs. 
Term
Foreign Corporation 
Definition
firm that operates in states where it is not incorporated. 
Term
Alien Corporation 
Definition
firm incorporated in one nation and operating in another nation. 
Term
Corporate Charter
Definition
legal document that formally establishes a corporation. 
Term
Preferred Stock
Definition
Stock whose holders have priority over common stockholders in the payment of dividends but usually have no voting rights.
Term
Common Stock
Definition
Shares of ownerships in a corporation.
Term
Employee ownership
Definition
Business in which workers purchases shares of stock in the firm that employs them.
Term
Not-for-Profit Corporation
Definition
Business-like organization such as a charitable group, social welfare group, or religious congregation that pursues objectives other than returning profits to its owners.
Term
Vertical Merger
Definition
Combination of two or more firms operation at different levels in the production and marking process.
Term
Horizontal Merger
Definition
Combination of two or more firms in the same industry that wish to diversify, increase their customer bases, cut cost, or offer expanded product lines.
Term
Conglomerate Merger
Definition
Combination of two or more unrelated firms, usually with the goal of diversification, spurring sales growth, or spending a cash surplus that might otherwise make the firm a tempting target for a takeover attempt.
Term
Joint Venture
Definition
Partnership between companies formed for a specific undertaking. 
Term
Public Ownership
Definition
Organization owned and operated by a unit or agency of government. 
Term
Cooperative (Co-op)
Definition
Organization whose owners join forces to collectively operate all or part of the functions in their business. 
Term
Forms of Business OwnerShip
Definition
Sole Proprietorships, Corporations, Partnerships
Term

Sole Proprietorship Advantage and DisAdvantage

 

Definition

1.Owner retains all profits

2. Easy to form and dissolve

3. Owners has flexibility

 

1. Unlimited financial Liability

2. financing Limitations

3. Management Deficiencies

4. Lack continuity

Term
Partnership Advantage and Disadvantages
Definition

1. Easy to form 

2. Can benefit from Complementary Management Skills

3. Expanded Financial Capacity

1. Unlimited Financial Liability 

2.Interpersonal Conflicts

3. Lack of continuity

4. Difficult to dissolve

Term
Corporation Advantages and Disadvantages
Definition

1.Limited Financial Liability 

2. Specialized management Skills

3. Expanded Financial capacity

4. Economies of Large-scale operations

1. Difficult and costly to form and dissolve

2. Tax disadvantages

3. Legal restrictions 

Term
Levels of Management in a Corporation
Definition

Stockholders-Board of Directors-Top Management-Middle Management-

Supervisory Management.

Term
Entrepreneur 
Definition
Person who seeks a profitable opportunity and takes the necessary risks to set up and operate a business 
Term
Classic Entrepreneurs
Definition
Person who identifies a business opportunity and allocates available resources to tap that market.
Term
Serial entrepreneur 
Definition
Person who starts one business, runs it , and then starts and runs additional businesses in succession. 
Term
Social entrepreneurs
Definition
Person who recognizes societal problems and uses business principles to develop innovative solutions.
Term
Why People Become Entrepreneurs
Definition

1. Desire to be one's own boss

2. Desire to Succeed Financially 

3. Desire for Job Security

4. Desire for an Improve Quality of Life

Term
Lifestyle Entrepreneur
Definition
Person who starts a business to reduce work hours and create a more relaxed lifestyle.
Term
Seed Capital 
Definition
Initial funding needed to launch a new venture.
Term
Debt Financing 
Definition
Borrowed funds that entrepreneurs must repay
Term
Equity Financing 
Definition
Funds invested in new ventures in exchange for part ownership. 
Term
Venture Capitalists 
Definition
Business firms or groups of individuals that invest in new and growing firms in exchange for an ownership share. 
Term
Angel investors 
Definition
Wealthy Individuals who invest directly in a new venture in exchange for an equity stake.
Term
Intrapreneurship
Definition
Process of promoting innovation within the structure of an existing organization. 
Term
Enterprise Zones
Definition
Specific geographic areas designated for economic revitalization. 
Term
Skunkworks
Definition
Project initiated by a company employee who conceives the idea, convinces top management of its potential, and then recruits human and other resources from within the firm to turn it into a commercial project. 
Term
Pacing Programs
Definition
Company-initiated and financed program to develop new products. 
Term
electronic Business (e-Business)
Definition
Conducting business via the internet. 
Term
Corporate Web Site
Definition
Website designed to increase a firm's visibility, promote its offerings, and provide information to interested parties. 
Term
Marketing Web site
Definition
Web site whose main purpose is to increase purchases by visitors. 
Term
Business-to-business (B2B) E-Business
Definition
Electronic business transactions between organizations using the Internet. 
Term
Extranet 
Definition
Secure network used for e-business and accessible through an organization's website; available to external customers, suppliers, and other authorized users.
Term
Business-to-consumer (B2C) e-business
Definition
Selling directly to consumers over the Internet. 
Term
electronic storefront 
Definition
Company Web site that sells products to customer. 
Term
Phishing 
Definition
High-tech scam that uses authentic looking e-mail or pop-up ads to get unsuspecting victims to reveal personal information. 
Term
Blog 
Definition
Online journal written by a bloggers
Term
Search Marketing
Definition
Paying search engines, such as Google, a fee to make sure that the company's listing appears toward the top of the search results. 
Term
Click-through rate
Definition
Number of visitors who click on a web banner ad. 
Term
Conversion rate
Definition
percentage of visitors to a website who actually make a purchase. 
Term

Electronic Data Interchange

 

(EDI) 

Definition
Computer-to-computer  exchanges of invoices, purchases orders, price quotations, and other information between buyers and sellers. 
Term
Private Exchange
Definition
Secure Website at which a company and its suppliers share all types of data related to e-business, from product design through order delivery. 
Term
Electronic Exchange 
Definition
online marketplace that caters to an industry's specific needs. 
Term
E-Procurement
Definition
use of the internet by business and government agencies to solicit bids and purchase goods and services from suppliers. 
Term
Electronic Shopping cart
Definition
File that holds items that the online shopper has chosen to buy. 
Term
Bot
Definition
Short for robot- a program that allows online shoppers to compare prices for a specific product at several e-tailers. 
Term
Encryption
Definition
process of encoding data for security purposes, using software that encodes and scrambles messages. 
Term

Secure Sockets layer

 

(SSL)

Definition
Technology that secures a web site by encrypting information and providing authentication. 
Term
Electronic Wallet
Definition
Secure computer data file set up by an online shopper at an e-business site that contains credit card and personal identification information. 
Term
Firewall
Definition
electronic barrier between a company's internal network and the internet that limits access into and out of the network. 
Term
Vishing
Definition
variation on phishing that involves a voice system in which the intended victim receives a voice message directing him or her to reveal personal financial information. 
Term
Channel Conflict
Definition
conflict between two or more members of a supply chain, such as a manufacturer, wholesaler, or retailer. 
Term
Spam
Definition
popular name for junk e-mail. 
Term
Electronic Bulletin Board
Definition
internet chat room that allows users to post and read messages on a specific topic. 
Term
Newsgroup
Definition
noncommercial online forum. 
Term
Wiki
Definition
web page that can be edited by users. 
Term
Podcast
Definition
audio or video blog. 
Term
Banner Ad
Definition
Ad placed by an organization on another organization's website; interested parties click on the ad for more information. 
Term
Pop-up Ad
Definition
Internet ad that pops-up in a new window; interested parties can click on the ad for more information. 
Term
Pre-Roll Video Ad
Definition
a shore advertising video clip that begins automatically whenever a user visits a particular Website. 
Term
Web-to-Store
Definition
Use of the Web to aid shoppers at brick-and-mortar retailers. 
Term
Display Ad
Definition
glossy-looking online ad often targeted at a specific user.