Business Characteristics, Business Ownership and Registration

producers

develop products for distribution from raw goods

processors

change raw goods into a more finished form

manufacturers

change raw or processed goods into finished goods

intermediaries

are considered as the middleman, move finished goods from one business to another, buy, store, and resell goods

wholesalers

bugy finished goods from manufacturers in large quantities and sell them to businesses in smaller quantities

retailers

buy finished goods from manufacturers or wholesalers and sell them directly to the consumer

service firms

provide services to consumers and other businesses

nonprofit organizations

provide goods and services to businesses and individuals, operate on donations, volunteers and philanthropists rather than income/profit

human resources

requires following laws and procedures, requires people with strong communication skills

employment process step 1

assess employment needs

employment process step two

recruit potential employees

employment process step 3

select employee who fulfills goals

employment process step 4

help employee get oriented

on the job training

campanies train employees while they work

group training

companies teach new skills to several employees at once

extrinsic motivation

motivation through outside sources

intrinsic motivation

motivation through internal sources

management

the process of reaching a pampants goals and objectives by using its reasources

planning

managements first main function, determining a direction for the company

organization

managements second main function

directing

managments third main function of management

controlling

managements fourth main function

accounting

a system used to record, classofy, summerize, and report the finanical position of a business

finanical transactions

are financial entries afftecting the finanicall position of a business

assets

items of value owned by a business

liabilities

debts or obligations of a business

owners equity

amount of capital invested by owners

financial transactions

assets=liabilities+owners equity

balance sheet

reports total in asset, liability and owners equity accounts

income statement

reports net imcome or net loss of a company

product

a good and or service designed to meet consumer wants and needs

price

must be low enough to attract consumers, but high enough to make profit

promotion

activities to persuade consumers they need the product

place

a location where products and or services are sold

sole proprietorship

owned and operated by one individual

partnership

is a legal agreement between two or more people to be responsible for a business

general partnership

partners share equal liability in the profits and losses of the business

limited partnership

partners have an unequal share and liability in the business they are responsible only for the amount they invested

corporation

the most complicated form on business

franchise

the right or license to sell a compants product or service at a location

franchisor

a business which leases its trase name and operating system to another person

franchisee

person or persons who pay fees to a company to operate a business under the franchisors trade name

investors

a group of people who invest money in a company in search of making profit

debt capital

money borrowed from a business or investor which must be repaid over time with interest

equity capital

money raised by a business or investor in exhange for a share of ownsership of the company

angel investors

wealthy people who seek high returns through private investments

venture capital firms

provide businesses with a finanical cushion

loans

amounts of money borrowed which will accumulate interest

bonds

debt investment where an investor loans money to an entity such as a corporation which borrows the funds for a defined period of time at a variable or fixed interest rate

shares

units of ownership in a corporation

common stock

a security which represents ownsership of a company

par value

the lowest price for which a share of stock can be sold

preferred stock

a class od ownership in a corporation which has a higher claim on its assets and earning tham common stock

domain names

unique names which identify internet sites and businesses

patents

the grants of intellectual property rights to the investor

copyrights

are protections provided to authors of original work