The purchase of a company by another, larger firm, which absorbs the smaller company into its operations.
2
New cards
board of directors:
A group of individuals elected by a firm's shareholders and charged with overseeing, and taking legal responsibility for, the firm's actions.
3
New cards
business plan:
Document in which the entrepreneur summarizes her or his business strategy for the proposed new venture and how that strategy will be implemented.
4
New cards
chief executive officer (CEO):
The person responsible for the firm's overall performance.
5
New cards
co-operative:
An organization that is formed to benefit its owners in the form of reduced prices and/or the distribution of surpluses at year-end.
6
New cards
common stock:
Shares whose owners usually have last claim on the corporation's assets (after creditors and owners of preferred stock) but who have voting rights in the firm.
7
New cards
conglomerate merger:
A merger of two firms in completely unrelated businesses.
8
New cards
corporate governance:
The relationship between shareholders, the board of directors, and other top managers in the corporation.
9
New cards
divestiture:
Occurs when a company sells part of its existing business operations to another company.
10
New cards
employee stock ownership plan (ESOP):
when a corporation buys its own stock with loaned funds and giving them to its employees. Employees "earn'' the stock based on some condition such as seniority. Employees control the stock's voting rights immediately, even though they may not take physical possession of the stock until specified conditions are met. This aligns the employees' interest with those of the shareholders, as they are shareholders themselves.
11
New cards
entrepreneur:
A business person who accepts both the risks and the opportunities involved in creating and operating a new business venture.
12
New cards
franchise:
a form of business by which the owner (franchisor) of a product, service or method obtains distribution/marketing through affiliated dealers (franchisees). example: mcdonalds
13
New cards
franchising agreement:
Specifies the duties and responsibilities of the franchisee and the franchiser.
14
New cards
friendly takeover:
An acquisition in which the management of the acquired company welcomes the firm's buyout by another company.
15
New cards
general partner:
A partner who is actively involved in managing the firm and has unlimited liability.
16
New cards
horizontal merger:
A merger of two firms that have previously been direct competitors in the same industry.
17
New cards
hostile takeover:
An acquisition in which the management of the acquired company fights the firm's buyout by another company.
18
New cards
initial public offering (IPO):
Selling shares of stock in a company for the first time to the general investing public.
19
New cards
inside directors:
Members of a corporation's board of directors who are also full-time employees of the corporation.
20
New cards
limited liability:
Investor liability is limited to their personal investments in the corporation; courts cannot touch the personal assets of investors in the event that the corporation goes bankrupt.
21
New cards
limited partner:
A partner who generally does not participate actively in the business, and whose liability is limited to the amount invested in the partnership.
22
New cards
merger:
The union of two companies to form a single new business.
23
New cards
microenterprise:
An enterprise that the owner operates part-time from the home while continuing regular employment elsewhere.
24
New cards
outside directors:
Members of a corporation's board of directors who are not also employees of the corporation on a day-to-day basis.
25
New cards
parent corporation:
A corporation that owns a subsidiary.
26
New cards
partnership:
A business with two or more owners who share in the operation of the firm and in financial responsibility for the firm's debts.
27
New cards
preferred stock:
Shares whose owners have first claim on the corporation's assets and profits but who usually have no voting rights in the firm.
28
New cards
private corporation:
A business whose stock is held by a small group of individuals and is not usually available for sale to the general public.
29
New cards
public corporation:
A business whose stock is widely held and available for sale to the general public.
30
New cards
small business:
An independently owned and managed business that does not dominate its market.
31
New cards
sole proprietorship:
Business owned and usually operated by one person who is responsible for all of its debts.
32
New cards
spinoff:
Strategy of setting up one or more corporate units as new, independent corporations. The corporation that does the spin off is a parent corporation. (division of a business, type of divestiture)
33
New cards
stock:
A share of ownership in a corporation.
34
New cards
stockholders (or shareholders):
Those who own shares of stock in a company.
35
New cards
strategic alliance:
An enterprise in which two or more persons or companies temporarily join forces to undertake a particular project.
36
New cards
subsidiary corporation:
One that is owned by another corporation.
37
New cards
tender offer:
An offer to buy shares made by a prospective buyer directly to a corporation's shareholders.
38
New cards
unlimited liability:
A person who invests in a business is liable for all debts incurred by the business; personal possessions can be taken to pay debts.
39
New cards
vertical merger:
A merger of two firms that have previously had a buyer—seller relationship.
40
New cards
managerial accounting
capturing the business's day-to-day financial activities in pursuit of an organization's goals.
41
New cards
If a business negotiates a 3.6% discount rate and has credit card sales this month of $78,450, what amount does it owe the bank?
A. $2,902.65 B. $2,745.75 C. $2,667.30 D. $2,824.20 - Correct
42
New cards
commercial banks
banks that offer service to the general public and companies
43
New cards
debt financing
borrowing money and not giving up ownership, comes with interest and strict rules
44
New cards
a business's current assets that are listed on financial statements are
liquid
45
New cards
What is the base amount used for vertical analysis of items on the income statement?
Net sales
46
New cards
a common risk of innovation is
Loss of jobs
47
New cards
buyout
the purchase of a controlling share in a company
48
New cards
cash flow statement
a financial statement that shows the movement in the Cash account of a company. It presents cash inflows (receipts) and outflows (payments) in the three activities of business: operating, investing, and financing
49
New cards
Investment
The act of committing money or capital to an endeavour with the expectation of obtaining an additional income or profit
50
New cards
Financing
the act of providing funds/capital for business activities, making purchases or investing and help them achieve their goals
51
New cards
Balance Sheet
a financial statement that summarizes a company's assets, liabilities and shareholders' equity at a specific point in time. These three balance sheet segments give investors an idea as to what the company owns and owes, as well as the amount invested by shareholders.
Assets = Liabilities + Shareholders' Equity
52
New cards
Asset
a piece of property or equipment purchased exclusively or primarily for business use.
categories of assets: current and non-current, short-term and long-term, operating and capitalized, and tangible and intangible
53
New cards
Liability
a company's financial debt or obligations that arise during the course of its business operations
54
New cards
shareholder's equity
the net value of a company, or the amount that would be returned to shareholders if all the company's assets were liquidated and all its debts repaid
55
New cards
Liquidate
convert assets into cash or cash equivalents by selling them on the open market
56
New cards
financier
person or organization that provides capital for a company
57
New cards
vertical analysis
a method of financial statement analysis in which each entry for each of the three major categories of accounts (assets, liabilities and equities), in a balance sheet is represented as a proportion of the total account
58
New cards
economic downturn
a fall in economic growth just before recession
59
New cards
net sales
Net sales are the amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any discounts allowed
60
New cards
paradigm shift
A paradigm shift is a major change in how some process is accomplished. A paradigm shift can happen when new technology is introduced that radically alters the production process of a good
61
New cards
sovereign immunity
a legal doctrine by which the sovereign or state cannot commit a legal wrong and is immune from civil suit or criminal prosecution
62
New cards
eminent domain
the right of a government or its agent to expropriate private property for public use, with payment of compensation
63
New cards
absolute privilege
a special right, advantage, or immunity granted or available only to a particular person or group of people
64
New cards
infringement
act of breaking the law or agreements in a contract
65
New cards
consideration (in contract)
a benefit which must be bargained for between the parties, and is the essential reason for a party entering into a contract
66
New cards
National Labor Relations Act
an act protecting rights of employees and employers, encouraging collective bargaining (negotiation of wages and other subjects by a group fo employees)
67
New cards
vocational rehabilitation act
prohibits discrimination on the basis of disability in programs conducted by Federal agencies
a civil rights law that prohibits discrimination based on disability
70
New cards
open corporation
a corporation whose ownership shares are available for exchange on a public market
71
New cards
consolidation
combining small companies into one large one
72
New cards
industrial user
a company that buys materials from other manufacturers to satisfy their own needs
73
New cards
indirect agent
promoters who are third-parties to a business, like a partner or affiliate, rather than a company's personnels
74
New cards
agent
a person who represents a person or company in matters of business and who can make business decisions, agreements, etc., for them
75
New cards
operating policy
a governing principle that mandates or constrains actions within a business
76
New cards
binding contract
An agreement in writing between two or more individuals or entities in which a court can impose penalties in the event one party attempts to negate on his or her promise
77
New cards
what are the three main factors in feasibility study?
1. staffing needs 2. return on investment 3. raw material needs
78
New cards
tactical plans
short-term plans for a business
79
New cards
strategic plans
long-term plans for a business
80
New cards
market-segment analysis
analyzing a group of potential customers and collecting information on them
81
New cards
what factors should a small business owner consider when hiring someone?
necessary skills and affordability
82
New cards
quota
a limited or fixed number or amount of people or things, in particular
83
New cards
trade credit
the credit extended to you by suppliers who let you buy now and pay later
84
New cards
return on equity
the ability of a company to generate income with their investments
85
New cards
when determining its hiring needs, a business must consider its
financial status and productivity needs
86
New cards
secondary needs
wants such as entertainment or leisure
87
New cards
primary needs
needs such as food, shelter
88
New cards
payroll stub
a notice that the direct deposit transaction has gone through
89
New cards
corporate chain
chain of a business, starbucks is a corporate chain
90
New cards
economic system
a system of production, resource allocation, and distribution of goods and services within a society or a given geographic area
91
New cards
performance measure
regular measurement of outcomes and results, which generates data on the effectiveness and efficiency of programs
92
New cards
measure of central tendency
mean, median, mode
93
New cards
geometric mean
9 in 3,9,27
94
New cards
logistics
the part of supply chain management that plans the flow and storage of goods/services between the point of origin and the point of consumption in order to meet customer's requirements
95
New cards
ARCI matrix
accountable, responsible, consultive, informed. it defines roles and responsibilities
96
New cards
sweepstakes
a type of contest where a prize or prizes may be awarded to a winner or winners. (kind of like a gamble)
97
New cards
rebate
a partial refund to someone who has paid
98
New cards
supervisory management
The action of overseeing and managing employees in the workplace. (low)
99
New cards
middle level managment
they implement company strategy in the most efficient way. are higher in power than supervisory, but lower than execs.
100
New cards
dashboard
a panel that organizes and presents information in a way that is easy to read