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Business owned/operated by 1 *Most common form of(80%)business ownership, but least in sales and net income
**men 2X more likely thn women to start own business |
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| form of business organization defined by the Uniform Partnership Act as “an association of two or more persons who carry on as co-owners of a business for profit” |
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| *most $ in sales and income |
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| limited liability company |
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Definition
| form of ownership that provides limited liability and taxation like a partnership but places fewer restrictions on members. |
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| advantages of sole proprietorship |
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Definition
ease/cost of formation
secrecy
distribution and use of profits
flexibility and control of the business
gov regulation
taxation |
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| disadvantages of sole proprietorship |
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Definition
unlimited liability
limited sources funds
limited skills
lack of continuity
lack of qualif employees
taxation |
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Definition
| form of business org defined by Uniform Partnership Act as "an association of 2 or more persons who are co-owners of for-profit business" |
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| partnership that involves a complete sharing in both the management and the liability of the business |
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| business org that has at least 1 general partner, who assumes unlimited liab, and at least one limited partner whose liability is limited to their investment in business |
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| legal docs that set forth the basic agreement between partners |
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| advantages of partnerships |
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Definition
ease of org
capital&credit
knowledge&skills
decision making
regulatory controls |
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| disadvantages of partnerships |
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Definition
unlimited liability
business responsibility
life of the partnership
distribution of profits
limited sources of funds
taxation of partnerships |
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| keys to business partnership success |
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Definition
profit sharing/ownership is 50-50
diff/complementary skills
honesty
face-to-face communications
share info
aware of fund constraint/limited resource
fam. is priority; limit association probs
dont over focus "idea" Implement.
Goals not Dreams |
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Definition
| legal entities created by the state whose assets and liab are seperate from owners |
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| prof of corp thatre distributed in form of cash payment to stockholders |
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Definition
| legal docs filed w/basic info bout the business w/the appropriate state office (often sec of state) |
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Definition
| corp owned by one or few ppl who are closely involved in managing the business (Hamilton Inc is Private Corp) |
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Definition
| corp whose stock anyone may buy, sell, or trade |
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Term
| Initial Public Offering (IPO) |
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Definition
| private corp who wishes to go bulic to raise additional capital and expand. The IPO is selling a corp's stock on public mrkts for 1st time |
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Definition
| corp owned/operated by the fed, state, or local gov |
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Definition
| focues on providing service rather than earning profit but not owned by gov entity |
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Definition
board of directors
preferred stock
comm stock |
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Definition
| group elected by stockholders to oversee the general operation of the corporation who set the corp's long-range objectives |
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| board members employed by the corp (typically executives) |
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| board members not directly affiliated w/corp (usually execs of other corps) |
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| partnership established for a specific project or for a limited time |
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Definition
| corp taxed like partnership w/restrictions on shareholders. Very pop w/entrepreneurs |
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Term
| Limited Liability Company (LLC) |
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Definition
| form of ownership that provides limited liability and taxation like apartnership but places fewer restrictions on members |
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Definition
| org composed of individuals or small businesses that have banded together |
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Definition
| combo of two companies (usually corps) to form new comp |
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Definition
| purchase of one company by another, usually by buying its stock and/or assuming its debt |
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| purchase in which a group of investors borrows money from banks and other institutions to acquire a company or a division of one) using the assets of the purchased company to guarantee repayment of the loan |
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Definition
| any independently owned and operated business, not dominant in its competitive area, employing less than 500 ppl |
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Term
| what percentage of all new jobs, annually were created by small business in the last 10 years |
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Definition
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| where are small businesses (entrepreneurs) likely in |
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Definition
retailing and wholesaling
services
manfacturing
high tech |
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| In manuf. where do small business have advantage over large firms |
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Definition
| Artwork, clothing, jewelry, clothing, furniture |
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| whatre ads of small business ownership |
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Definition
personal/business advantaes
costs
flexibility
focus
reputation |
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| small business disadvantages |
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Definition
high stress
high failure rate (90% in 5 years)
undercapitalization (lack of funds)
managerial inexperience/incompetence
inability to cope w/growth |
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Term
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Definition
| selling or borrowing against the value of an asset (automobile, insurance policy, savings account) to obtain funds to operate a business. |
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Term
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Definition
| precise statement of the rationale for the business and a step-by-step explanation of how it will achieve its goals. Acts as a guide and reference document. |
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| persons/organizations that agree to provide funding for a new business in exchange for an ownership interest or stock. Usually requires a sharing of ownership/control. |
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| borrowing financial resources typically from a bank or lending institution The SBA offers financial assistance to qualifying businesses |
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| agreement by which a financial institution promises to lend a business a predetermined sum on demand. |
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| individuals in large firms who take responsibility for the development of innovations within the organization |
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Definition
| Process designed to achieve an organization’s objectives by suing its resources effectively & efficiently in a changing environment. |
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| diff between tactical and operation plans |
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Definition
tactical 1 year or less
operational 1 month, week, or day |
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| diff between directing and controlling |
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Definition
directing: motivating and leading employees to org's objectives
controlling: evaluating and correcting activities to keep org on course |
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Term
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Definition
| top, middle, and first-line/supervisory management |
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| who makes up top management |
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Definition
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| whats middle management do |
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Definition
responsible for tactical planning
implement general guidelines
*established by top managment* |
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| whats first-line management do |
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Definition
Supervise workers
Oversee daily operations
Directing and controlling primary functions |
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Term
| diff between autocratic, democratic, and free-rein leaders |
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Definition
auto: tell employees
demo: involve employees in decisions
f-r: employees work w/out interference |
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Term
| according to JP Kotter, management functions boil down to |
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Definition
Figuring out what to do despite uncertainty, diversity, and a great deal of potentially relevant information.
Getting things done through a large and diverse set of people despite having little direct control over them. |
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Definition
recognize/define decision situation
develop options
analyze options
select best option
implement the decision
monitor consequences |
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Term
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Definition
Figuring out what to do despite uncertainty, diversity, and a great deal of potentially relevant information.
Getting things done through a large and diverse set of people despite having little direct control over them. |
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Definition
Managers divide the labor into small, specific tasks and assign to employees to accomplish individual tasks
overspecilization signs: bored employees, job dissatisfaction, poor quality work, increase in injuries and employee turnover |
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Term
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Definition
| Grouping of jobs into working units (departments, units, groups, divisions) |
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