Term
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Definition
| a form of business ownership with a single owner who manages the company |
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Term
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Definition
| a voluntary agreement under which two or more people act as co-owners of a business for profit |
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Term
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Definition
| a form of business ownership in which the business is considered a legal entity that is separate and distinct from its owners |
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Term
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Definition
| when owners are not liable for claims against their firms. They may lose their company but they maintain their assets (applies to corporations) |
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Term
| limited liability company (LLC) |
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Definition
| a form of business ownership that offers both limited liability to its owners and flexible tax treatment |
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Term
| Advantages of a Sole Proprietorship |
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Definition
| Easy Formation, Retention of Control, Pride of Ownership, Retention of Profits, Tax Advantages |
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Term
| Disadvantages of Sole Proprietorships |
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Definition
| Limited financial resources, unlimited liability, limited ability to maintain employees, heavy workload, lack of permanence |
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Term
| Advantages of Partnerships |
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Definition
| ability to pool financial resources, ease of formation, possible tax advantages, complement skills |
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Term
| Disadvantages of a Partnership |
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Definition
| unlimited liability, potential disagreements, lock of continuity, difficult to withdraw from a partnership |
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Term
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Definition
| a partnership that includes a least one general partner who accepts unlimited liability and one limited partner who gives up the right to manage the company in exchange for limited liability |
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Term
| limited liability partnership (LLP) |
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Definition
| a form of partnership in which all partners have the right to manage the company with limited liability |
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Term
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Definition
| the most common type of corporation, a legal business that offers limited liability to all its owners (stockholders) |
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Term
| Advantages of C corporation |
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Definition
| limited liability, permanence, easy to transfer ownership, ability to raise large amounts of money |
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Term
| Disadvantages of C corporation |
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Definition
| expensive and complex to set up, double taxation, more regulations, possible conflict of interests |
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Term
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Definition
| a form of corporation that avoids double taxation by being taxed as a partnership |
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Term
| statutory close corporation |
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Definition
| a corporation with a limited number of owners than operate under simpler rules |
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Term
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Definition
| a corporation that does not seek to earn a profit |
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Term
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Definition
| when one firm buys another |
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Term
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Definition
| when two independent businesses form a new organization |
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Term
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Definition
| the transfer of ownership some of a firm's assets to another company |
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Term
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Definition
| when two firms merge in the same industry |
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Term
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Definition
| when firms merge at different stages of developing a product |
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Term
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Definition
| when two firms combine from unrelated industries |
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Term
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Definition
| a licensing agreement where a franchisor allows franchises to use its name and trademark in exchange for monetary payments |
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Term
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Definition
| the business entity that allows others to operate their business using resources it supplies |
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Term
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Definition
| the party in a franchise that pays for the right to use resources supplied by the franchisor |
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Term
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Definition
| a type of franchising where the franchisor makes a product and licenses he franchisee to sell it |
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Term
| business format franchise |
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Definition
| a type of franchising agreement where a franchisee pays to use the name and trademark of a franchisor as well as their production methods |
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Term
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Definition
| people who risk their time and money to start a business |
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Term
| Reasons to start a small business |
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Definition
| great potential for financial success, independence, flexibility, challenging |
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Term
| internal locus of control |
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Definition
| the individual is personally responsible for what happens in his/her life |
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Term
| external locus of control |
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Definition
| people other than the individuals are responsible for what happens in his/her life |
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Term
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Definition
| individuals who invest in start-up companies in exchange for a share of the ownership |
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Term
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Definition
| companies that invest in start up businesses in exchange for a share of ownership |
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Term
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Definition
| a small segment of market with fewer competitors and tend to be more attractive to smaller firms |
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Term
| Threats to small businesses |
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Definition
| high risk of failure, lack of knowledge and experience, too little money |
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Term
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Definition
| a document that describes a business concept, usually details for accomplishing some objectives |
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Term
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Definition
| a system for recognizing, organizing, and reporting information about financial transactions that affect an organization |
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Term
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Definition
| accountants who work within a business preparing reports and analyzing financial information |
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Term
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Definition
| accountants who provide a variety of services for clients on a free basis |
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Term
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Definition
| accountants who work for a wide variety of government agencies at the local and state levels |
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Term
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Definition
| the branch of accounting that prepares financial statements |
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Term
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Definition
| assets = liabilities + owner's equity |
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Term
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Definition
| resources owned by a firm |
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Term
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Definition
| claims that outsiders have against a firm's assets |
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Term
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Definition
| the claims a firms owners have against their company's assets |
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Term
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Definition
| the financial statement that reports revenues, expenses, and net income over a given period of time |
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Term
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Definition
| the branch of accounting that provides reports and analysis to help make business decisions |
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Term
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Definition
| an evaluation of the financial impact of decision making |
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Term
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Definition
| costs that change as the result of a decison |
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Term
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Definition
| a management tool that shows how a firm will acquire and use the resources needed to achieve goals over a period of time |
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Term
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Definition
| budgets that communicate an organization's sales and production goals and the resources needed to meet them |
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Term
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Definition
| budgets that focus on the firm's financial goals and identifies the resources needed to achieve the goals |
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Term
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Definition
| represents a firm's overall plan of acton for a specific period of time |
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