Business Structures and Management Concepts

These flashcards cover the key concepts of business structures, management functions, marketing principles, and strategic approaches in business.

Sole Proprietorship

A business owned by one person who has full control and keeps all profits.

Unlimited Liability

A disadvantage of sole proprietorship where the owner is personally responsible for all debts and obligations.

Partnership

A business owned by two or more people who share profits, losses, and management responsibilities.

Limited Liability

A key advantage of corporations where owners are not personally responsible for business debts.

LLC (Limited Liability Company)

A hybrid business structure offering liability protection of a corporation with the tax benefits of a partnership.

S-Corp

A corporation that elects a special tax status allowing profits and losses to pass through to shareholders.

Management

The process of planning, organizing, leading, and controlling resources to achieve organizational goals.

Top Level Management

Managers who make high-level decisions affecting the entire organization.

Span of Control

The number of employees a manager can effectively supervise.

Centralized Decision Making

A system where decision authority is concentrated at the top levels of management.

Decentralized Decision Making

A system where decision authority is distributed to lower levels of management.

Organizational Structure

The formal system that outlines how tasks, responsibilities, and authority are divided in an organization.

Marketing

The process of creating, promoting, and delivering products or services that satisfy customer needs.

Marketing Mix (4 P's)

The combination of Product, Price, Place, and Promotion used to market a product.

Market Segmentation

The process of dividing a broad market into smaller groups with shared characteristics.

Product Strategy

A company's plan for developing, marketing, and managing its products to meet customer needs.

Branding

The process of creating a unique name, symbol, or design that differentiates a company's products.

Intensive Distribution

A marketing strategy where products are made available in as many outlets as possible.

Selective Distribution

A marketing strategy where products are available in a limited number of chosen outlets.

Exclusive Distribution

A strategy where products are available through only one or very few outlets in a geographic area.