Chapters 5-7 Business Study Guide

Vocabulary flashcards covering forms of business ownership, entrepreneurship, and management functions from Chapters 5, 6, and 7.

Sole prior. (Sole proprietorship)

A business owned by one person.

Cooperative

An organization that is owned and controlled by the people who use it, which is not as popular.

Conventional corporation

A state-chartered legal entity with authority to act and be separate from its owners.

Stack holder

An owner of a corporation.

Unlimited liability

A condition where you are responsible for all business debt.

Acquisition

An occurrence where one company acquires another company.

Merger

When two companies or firms combine to form one.

General partner

A partner who manages the business and has unlimited liability.

Limited partner

A partner who acts strictly as an investor.

LLC advantages

Offers limited liability and tax advantages.

LLC disadvantage

Involves extra paperwork.

Sole proprietorship advantages

Operating as a solo owner and having your own schedule.

Sole proprietorship disadvantages

Carrying unlimited liability and having a limited skill set.

Entrepreneur

An individual characterized as being action oriented.

Micro prenuer (Micropreneur)

An entrepreneur who maintains a business at a smaller size.

Introprenuer (Intrapreneur)

A person working within a company to launch new products.

Business plan

A written document that details everything about the business.

Executive summary

A section of a business plan that includes introductory information that captures the reader's attention.

Four functions of management

Planning, leading, organizing, and controlling.

Management

The process used to accomplish goals through leading.

Planning

The management function of setting organizational goals, vision, and objectives.

Objectives

Short form statements that align with organizational goals.

Goals

Long term accomplishments of an organization.

Controlling

Determining if an organization is progressing towards goals and taking action when necessary.

SWAT Anaylsis

A tool used by a company to evaluate Strength, Weakness, Appurtunity (Opportunity), and Threat.

Autocratic

A leadership or management style that makes management decisions without consulting.

Free leign (Free-rein)

A leadership style that gives an objective and lets employees do how they want.