SMALL BUSINESS 1 EXAM

business

an organization that combines inputs of raw materials, capital, labor, management skills to produce useful outputs of goods and services to earn a proft

small business

a business that is independently owned and operated and is not dominant in its field of operations

management

the art and science of motivating people towards the achievement of a goal through energizing, channeling and sustaining peoples behavior

entrepreneur

one who organizes, manages, and assumes the risk of a business

startups

new business ventures started from the beginning

reluctant entrepreneur

a person who becomes an entrepreneur because of some severe hardship

corporate refugee

a person who becomes an entrepreneur because they are escaping an undesirable job situation

social entrepreneur

an individual who pursues innovative solutions to social needs, problems, and opportunities

attractive small firm

a small firm that provides substantial profits to its owner

lifestyle business

A business that permits the owner to follow a desired pattern of living

high-potential venture (gazelle)

a small firm that has great prospects for growth

microbusiness

a small business that provides minimal profits to its owners

niche market

a specific group of customers that have an identified need that is narrow or speciality product/service

42%

what percent of cremated remains are returned to families

35.2%

what percent of cremated remains are buried at a cemetery

80 years

median number of years a firm has been in business

50 years

median number of years a firm has been in the same family

quantity

exact or specified amount or measure

quality

distinctive characteristic, property, or attribute

Small Business Administration

federal government agency that counsels, assists, and protects the interests of small business concerns

less than 500

how many employees does a small business have to have to be considered small

technician

a person who is a day-day doer that has technical skills, independent, and is reluctant to delegate

manager

day to day planner that is responsible for ordering and planning, delegates, and puts out fires and starts new ones

entrepreneur personality

long term planner that is considering how the business should work as a system and strategizes

manufacturing business

a business that makes finished goods from raw materials by hand or machinery

merchandising business

a business that purchases finished goods for resale at a profit

service business

a business that provides a service as opposed to a product

competition

trying to obtain something that is being sought by others

innovation

the introduction of something new; an idea, method, or device

talent management

process of HR to locate, hire, train, and retain the best qualified employees

Equal Employment Opportunity Commission

A federal agency that enforces laws against workplace discrimination through guidelines and requirements for employment practices

Civil Rights act of 1964

act that prohibited general discrimination in the workplace; enforced by the EEOC and applies to employers with 15+ employees

equal pay act

outlaws discrimination in pay based upon gender

pregnancy discrimination act

employers shall not discriminate based upon pregnancy when it comes to hiring, firing, pay, job assignments, etc

Americans with Disabilities Act

guarantees disabled people equal access to employment and public places

Age Discrimination in Employment Act

requires employer to treat applicants equally regardless of age; protects people over 40 in termination and discrimination in pay

Vietnam Era Veterans Readjustment Act

outlaws employment discrimination against Vietnam veterans

Recruitment

forming a pool of qualified applicants relative to tasks that need to be filled

labor demand

when the demand for something goes up prices rise and quantity sold increases

employment application

a record of statements made at the time the applicant first seeks employment

job analysis

determining the critical components of a job

job description

document that lists major responsibilities and tasks of the job

job specification

document that lists knowledge, skills, and abilities that an applicant must possess to perform effectively

bona fide occupational qualification

a qualification absolutely necessary for a job; is an allowed reason for discrimination

employee handbook

a summary of human resources policies and procedures

W-4 Form

Employee's Withholding Allowance Certificate that shows the employer how much tax to withhold from an employee's check

immigration reform act

federal legislation that requires employers to check job applicants papers to be sure they are either US citizens or aliens authorized to work in the US

I-9 Form

Employment eligibility verification form, used for verifying the identity and employment authorization of individuals hired for employment in the United States.

Fair Labor Standards Act

act that outlaws discriminatory practices in pay and overtime work; sets the minimum wage

7.25

federal minimum wage

Family and Medical Leave Act

act that ensures employees unpaid leave for childbirth and other family needs

Environmental Protection Agency

an independent federal agency established to coordinate programs aimed at reducing pollution and protecting the environment

zoning ordinance

formal codification land use policies by a unit of a local government that establishes permitted uses and distinguishes land uses which may be incompatible

patent

registered right of an inventor to make use, and sell an invention

copyright

registered right of a creator to reproduce, publish, and sell the work of a person/entity

trademark

distinct name, sign, or symbol that the federal government grants exclusive rights to use for a specified time

Sole proprietorship

a business that has one owner and bears unlimited liability for the enterprise

partnership

the voluntary association of two or more parties with combines resources that are co-owners of a lawful enterprise and has joint profit UNLIMITED LIABILITY

general partnership

a partnership in which the partners are active in managing the business and are known

limited partner

a co-owner that has limited liability in a business and only has debt that correlates to how much they have invested into the business; no day to day involvement into the business

corporation

business/legal entity that is created by statutory law and the owners and stockholders

c corp

A legal corporation that offers limited liability with double taxation.

s corp

A legal entity that offers limited liability with single taxation.

limited liability company

hybrid form of business organization that combines features of both partnerships and corporations - has limited liability and pass through taxation

unlimited liability

no separation between the business an the owner

limited liability

a limitation on what someone can sue or recover or retrieve in a business structure

silent partner

an individual who takes no active part in the management of a partnership but has capital invested in the business; no one publicly knows about this person

secret partner

a partner who is active but is unknown to the public

Fiduciary Duty

That duty owed by an agent to act in the highest good faith toward the principal and not to obtain any advantage over the latter by the slightest misrepresentation, concealment, duress or pressure.

Joint and Several Liability

liability that a person or business either shares with other tortfeasors or bears individually

Vicarious Liability

Legal doctrine under which a party can be held liable for the wrongful actions of another party.

tort

A civil wrong

acts of the parties (agreement, withdrawal)

Court order (insanity, incapacity)

operation of law (death, bankruptcy)

these are the 3 methods in which a partnership may dissolve

taxed as a partnership

how are shareholders taxed in an s-corp

max of 100

what is maximum number of shareholders an s-corp can have

common stock

1 share of stock gives the right to vote

preferred stock

governs owners preferential features and moves them up in the list to guarantee them a higher dividend than a common stock holder

Professional Corporation

corporation that limits the liability of owners in certain professions - if there is multiple of the same person with the same job title in the same corporation, then this separates the actions of ones away from the actions of others

non profit corporations

corporations that usually serve one of the following areas of service: civic, educational, charitable, religious

public corporation

corporation that carries out governmental functions, such as universities, hospitals, etc

private corporations

corporations that are formed to carry out some non-governmental function for profit or non profit

publicly traded

outstanding shares of stocks are traded on a stock exchange freely

closely held

outstanding shares of stock and managerial control are held by a limited number of stockholders

domestic corporation

corporation that operates in the state that granted the charter

foreign corporation

corporation that operates in a state other than where it is chartered

Alien corporation

corporation that is incorporated in a foreign country

promoter

person in a corporation who assembles the plan, materials, and personnel for new business enterprises

articles of incorporation

the highest governing document in a corporation that is filed with the state at the time of incorporation

corporate charter

a flexible document that is filed with the SOS in the state of incorporation

bylaws

A set of governing rules adopted by a corporation or other association.

stockholders

those having title to one or more shares of stock in a corporation; combined, they represent ownership of the corporation

board of directors

ELECTED BY STOCKHOLDERS that define and establish corporate policy- they appoint OFFICERs

Limited Liability Company (LLC)

hybrid form of business organization that combines features of both a corporation and a partnership with limited liability and no shares of stock

operating agreement

equivalent of partnership agreement and articles of incorporation but for an LLC; is not required in every state