Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
175 Cards in this Set
- Front
- Back
What characteristic does the SBA use to determine whether a business is small business?
|
the number of employees, annual sales, and whether a firm is independently owned and not dominant is it field
|
|
Identify three industries i which small businesses are common
|
construction
wholesale retail service industries |
|
tho what extend do small businesses help create new fobs
|
three of four new jobs, new industries and innovation goods ans services
|
|
what percentage of small businesses will still be in business two, four, six and ten years after starting
|
1/3 of 50% , 62% 82% businesses will have failed within two,four, six and ten years
|
|
How do management shortcomings, inadequate financing, and government regulation make small businesses more likely to fail?
|
founders of new businesses often lack the business expertise and experience needed to grow a business, Inadequate financing prevents small businesses from handling the inevitable cash shortfalls they face and form attracting and keeping talented people. Government regulation burdens small business that have limited staff and budget with expensive, time'comsuming red tape andpaperwork
|
|
What components should be part of a good business plan
|
contains an executive summary an introduction, separate financial and marketing sections. and the resumes of principals
|
|
what are the various ways and methods by which the SBA helps small businesses with financing and getting government contracts?
|
The SBA guarantees business loans; helps small businesses compete for government set-aside programs; and provides business information, advice and training
|
|
distinguish between a franchiser and a franchisee
|
permit franchisees to use their business name and to sell their business's goods and services. Franchises also provide franchisees a variety of marketing, management, and other services in return for various fees and a percentage of the franchise's sales
|
|
Name some the largest franchises
|
subway, McDonald's, liberty Tax Service, sonic drive in . Intercontinental hotel group, Ace hardware, pizza hut UPS/mailboxes.
|
|
Small business
|
firm that is independently owned and operated, is not dominant in its field and meets industry specific size standards for income or number of employees
|
|
home-based business
|
firms operated form the residence of the business owner
|
|
business plan
|
written document tat provides an orderly statement of a company's goals, the methods by which is intends to achieve those goals, and the standards by which it will measure achievements
|
|
small business administration (SBA)
|
federal agency that aids small businesses by providing management training and consulting, financial asistance, and supported in securing government contractss
|
|
microloans
|
SBA guarantees of up to 35,000 to start-ups and other very small firms pg 156
|
|
small business investment company
|
small business loans available through SBA-licensed org. which are run by experience venture capitalists. pg 156
|
|
set-aside programs
|
many government procurement programs set aside portions of government spending for small companies; an additional SBA role is to help small firms secure these contracts. pg156
|
|
business incubator
|
organization that provides temporary low-cost, shared facilities to small start-up ventures
|
|
franchising
|
contractual agreement that specifies the methods by which a dealer can produce and market a supplier's good or service.
|
|
sole proprietorship
|
form of business ownership in which the company is owned and operated by one person
|
|
partnership
|
form of business ownership in which the company is operated by two or more-people who are co-owners by voluntary legal agreement.
|
|
corporation
|
business that stands as a legal entity with assets and liabilities separate from those of its owner(s)
|
|
S corporations
|
a business that meets certain size, including ownership by no more than 100 shareholders,
These firms can elect to pay federal taxes as partnerships while retaining the liability limitations typical of corporations pg166 |
|
limited liability companies (LLCs)
|
to secure the corporate advantage of limited liability while avoiding the double taxation characteristic of corporations.
An LLC structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited ability of a corporation. pg166 |
|
domestic corporation
|
a firm in the state where it is incorporated
|
|
foreign corporation
|
when a company does business in states other than the one where it has filed incorporation papers
|
|
alien corporation
|
firm incorporated in one nation that operates in another
|
|
stockholder
|
person or organization who owns shares of stock on a corporation
|
|
corporate charter
|
a legal document that formally establishes a corporation
|
|
preferred stock
|
limited voting rights
entitled to receive dividends before holders of common stock If a corp. dissolve, they have first claims on assets, once debtors are repaid |
|
common stock
|
have voting rights
but only residual claims on the firm's assets, (they are the last to receive any income distributions. |
|
board of directors
|
elected governing body of a corporation
|
|
employee ownership
(corp.) |
alternative in creating a corp. which workers buy shares of stock in the company that employees them.. the corp. organization stay the same, but most stockholders are also employees pg 169
|
|
not-for-profit corporation
|
firms pursuing objective other than returning profits to owners
|
|
merger
|
combination of two or more firms to form one company
|
|
acquisition
|
procedure in which one firm purchases the property and assume the obligations of another
|
|
vertical merger
|
companies firms operating at different levels in the production and marketing process there are two goals
1. ensure adequate flows of raw materials and supplies needed for a firm's products 2. increase distribution |
|
horizontal merger
|
joins firms in the same industry that wish to diversify, increase their customer bases, cut costs, or offer expanded product lines.
|
|
conglomerate merger
|
combines unrelated firms, to diversify, spur sales growth,or spend a cash surplus that might otherwise make the firm a tempting target for a takeover effort. they may be totally unrelated industries
|
|
joint venture
|
a partnership between companies formed for a specific undertaking.
|
|
public ownership
|
alternative to private ownership, which a unit or agency of government owns and operates an organization.
ex: local government often own parking structures and water system, pennsylvania turnpike authority |
|
cooperative (co-op)
|
collective ownership of a production, storage, transportation,or marketing org. whose owners join forces to operate all or part of the functions in their industry pg 172
|
|
entrepreneur
|
person who seeks a profitable opportunity and takes the necessary risk to set up and operate business
|
|
classic entrepreneur
|
person who identifies a business opportunity and allocates available resources to tap that market
|
|
serial entrepreneur
|
person who starts one business, run it, and then starts and runs additional businesses in succession
|
|
social entrepreneurs
|
person who focus on solving society's challenges they recognize a societal problem and use business principles to develop innovative solutions. they are pioneers of innovations that benefit humanity
|
|
lifestyle entrepreneur
|
person who starts a business to reduce work hours and create a more relaxed lifestyle
|
|
seed capital
|
initial funding needed to launch a new venture
|
|
debit fin acing
|
borrowed funds that entrepreneurs must repay
|
|
equity financing
|
funds invested in new ventures in exchange for part ownership
|
|
venture capitalist
|
business firms or groups of individuals that invest in new and growing firms in exchange for an ownership share
|
|
angel investors
|
wealthy individuals who invest directly in anew venture in exchange for an equity stake
|
|
intrapreneurship
|
process of promoting innovation within the structure of an existing org.
|
|
skunkworks
|
project initiated by an employee who conceives an idea and recruits resources form within to turn in into a commercial product
|
|
pacing programs
|
company-initiated projects that focus on a few products and technologies , sees potential for rapid marketplace winners. the company provides financing, equipment,and people to support such pacing projects
|
|
electronic business
|
conducting business via the Internet
|
|
corporate web site
|
web site designed to increase a firm's visibility promote its offerings, and provide information to interested parties
|
|
marketing web site
|
web site whose main purpose is to increase purchases by visitors
|
|
business-to-business (B2B) e-business
|
electronic business transactions between organizations using the Internet
|
|
electronic data interchange (EDI)
|
computer-to-computer exchanges of invoices,purchase order,price quotations. and other sales information between buyers and sellers
|
|
extranet
|
secure network used for e-business and accessible through an organization's web site; customer, suppliers, and other authorized users
|
|
private exchange
|
secure web site at which a company and its suppliers share all types of data related to e=business, form product design through order delivery
|
|
electronic exchanges
|
online marketplaces that bring buyers and sellers together and cater to a specific industry's needs.
|
|
e-procurements
|
web-based systems that enable all types of organizations to improve the efficiency of their procurement processes.
|
|
business-to-consumer (B2C)
|
selling directly to consumers over the Internet
|
|
electronic storefront
|
company web site that sells products to customers
|
|
bots
|
short for robots---make it easy to compare prices at dozens of e-tailer. such as shopping .com by specifying small details of what you are looking for then it list all the stores that have what your looking with cost
|
|
encryption
|
process of encoding data for security purposes
|
|
secure sockets layer (SSL)
|
technology to encrypt information and verify the identity of senders and receivers. SSL consists of a public key and private key- software that encrypts and decrypts information the public key is used for encrypt private key is to decipher
|
|
electronic wallet
|
online payment method. computer data file at an e-business site's checkout counter that contains not only electronic cash but credit card info, owner identification and address making so customers do not have to repeatedly enter the information for purchases
|
|
firewall
|
electronic barrier between a company's internal network and the Internet that limits access into and our of the network
|
|
phishing
|
high-tech scam that uses authentic looking e-mail or pop-ups ads to get unsuspecting victims to reveal personal information
|
|
vishing ( voice phishing)
|
scam that involves an e-mail, text message, or telephone call to a consumer supposedly for a credit card company. pg 228
|
|
channel conflicts
|
disputes between producers, wholesalers, and retailers
|
|
spam
|
junk e-mail
|
|
electronic bulletin boards
|
Internet forum used by firms to attract attention by appealing to people who share common interests.
|
|
Newsgroups
|
noncommercial Internet versions of forums. people post and read messages on specific topics.
|
|
blog
|
online journal written by a blogger
|
|
wiki
|
web page that anyone can edit, so a reader can, in addtion to asking questions or posting comments, actually make changes to the Web page.
|
|
podcast
|
bloggers can prepare video or audio recording on a PC and than post it to a web site, from which it can be downloaded to an mp3 player or smart phone
|
|
banner ads
|
the most common form of Internet advertising, are typically small messages place in high-visibility areas of frequently visited web sites
|
|
pop-up
|
separate window that contains d advertising message this type of advertising is some what questionable. many scam artist use these.
|
|
searching marketing
|
paying search engines, such as google, a fee to make sure that the company's listing appears toward the top of the search results
|
|
pre-roll video ads
|
an advertiser's short video clip runs as soon as a web page loads. they are usually 15 to 30 seconds long
|
|
web-to-store
|
group that favors the Internet primarily as a research tool and time-saving device for retail purchases made in stores
|
|
conversion rate
|
percentage of visitors to a web site who actually make a purchase
|
|
click-through rate
|
number of visitors who click on a web banner ad
|
|
display ad
|
ads designed to reach targeted audiences and are the equivalent of glossy magazine ads or television commercials. many consider to be the future of internet advertising
|
|
management
|
process of achieving organizational objectives through people and other resources.
|
|
top management
|
chief executive officer (CEO)
chief financial officer (CFO) executive vice president |
|
middle management
|
second tier in management hierarchy, includes:
general managers plant managers division managers, branch managers their focus is on specific operations, products or customer groups within a org. |
|
supervisory management
|
first-line management, such as supervisor, section chief, and team leader. these managers are directly responsible for assigning non managerial employees to specific jobs and evaluating their performance.
|
|
technical skills
|
are the ability to understand and use the techniques,knowledge, and tools and equipment of a specific discipline or department.
|
|
human skills
|
are interpersonal skills that enable mangers to work effectively with and through people include:ability to communicate with, motivate and lead employees to complete assigned activities
|
|
conceptual skills
|
ability to see the organizations as a unified whole and understand how each part of the overall org. interacts with other parts
|
|
planning
|
process of anticipating future events and conditions and determining courses of action for achieving organizational objectives.
|
|
organizing
|
mangers blend human and material resources through a formal structure to task and authority. by classifying and dividing work into manageable units by determining specific tasks necessary to accomplish organizational objectives grouping task into a logical pattern or structure assigning them to specific personnel.
|
|
directing
|
guiding and motivating employees to accomplish organizational objectives. explaining procedures, issuing orders, seeing the mistakes are corrected.
|
|
controlling
|
the function of evaluating an org's performance to determining whether is is accomplishing objectives. basic purpose is to assess the success of the planning function.
|
|
vision
|
perception of market-place needs and the methods an org. can use to satisfy them visions serves as the target for a firm's actions helping direct the company toward opportunities and differentiating it form its competitors
|
|
strategic planning
six steps |
1. defining a mission
2. assessing the organization's competitive position 3. setting organizational objectives 4. crating strategies for competitive differentiation 5. implementing the strategy 6. evaluating the results 6. refining the plan |
|
strategic planning
|
process of determining the primary objectives of an org. and then acting and allocating resources to achieve those objectives
|
|
tactical planning
|
implementing the activities specified by strategic plans
|
|
operational planning
|
creates the detailed standards that guide implementation of tactical plans
|
|
contingency planning
|
creates plan to resume operations as quickley and as smoothly as possible after a crisis while openly communicating with the public about what happened
|
|
mission statement
|
written explanation of an org.. business intentions and aims
|
|
SWOT analysis
|
org. approach to assessing a company's internal:
S.strengths W. weaknesses O. opportunities T. threats |
|
objectives
|
guideposts by which managers define the org. desired performance in such areas as profitability, customer service, growth, and employee satisfaction
|
|
competitive differentiation
|
unique combination of a company's abilities and approaches that sets it apart from competitors.
|
|
decision making
|
process of recognizing a problem or opportunity, evaluating alternative solutions, selecting and implementing an alternative and assessing the results
|
|
programmed decision
|
simple, common , and frequently occurring problems for which solutions have already been determined
|
|
non programmed decision
|
involves a complex and unique problem or opportunity with important consequences for the org.
|
|
leadership
|
ability to direct or inspire people to attain org. goals
|
|
autocratic leadership
|
centered on the boss. make decisions on their own without consulting employees.
Reach decisions, communicate them to subordinates, and expect prompt implementation |
|
democratic leadership
|
involves subordinates in making decisions
|
|
empowerment
|
a practice in which mangers lead employees by sharing power, responsibility, and decision making
|
|
corporate culture
|
org. system of principles, beliefs, and values
|
|
free-rein leadership
|
believe in minimal supervision. leave most decisions to their subordinates
|
|
organization
|
structured grouping of people working together to achieve common goals
|
|
organization chart
|
visual representation of a firms structure that illustrates job positions and functions
|
|
departmentalization
|
process of dividing work activities into units within the org.
|
|
delegation
|
act of assigning work activities to subordinates
|
|
span of management
|
number of subordinates a manger can supervise effectively
|
|
centralization
|
retains decisions making at the top of the management hierarchy
|
|
decentralization
|
locations decision making at lower levels.
trend toward this pushed decision making down to operating impolyees |
|
chain of command
|
set of relationships that indicates who directs which activities and who reports to whom
|
|
line organization
|
the oldest and simplest org. structure, establishes a direct flow of authority form the chief executive to subordinates
|
|
lin-and-staff organization
|
combines the direct flow if authority of a line org. with staff departments that support the line departments
|
|
line manger
|
forms part of the primary line of authority that flows throughout the org. functions need to produce ans sell goods and services
|
|
staff manager
|
provide information, advice ,or technical assistance to aid line mangers. they do not have authority to give order outside their own departments or to compel line managers to take action
|
|
committee organization
|
structure that places authority and responsibility jointly in the hands of a group of individuals rather than a single manger
|
|
matrix structure
|
links employees form different parts of the org. to work together on specific projects
|
|
management
|
the use of people and other resources to accomplish org.objectives
|
|
human resource management
|
function of attracting, developing, and retaining enough qualified employees to perform the activities necessary to accomplish org. objectives
|
|
affirmative actin programs
|
to increase jog opportunities for women, minorities, disabled people, an other protected groups
|
|
cognitive ability tests
|
measure job candidates abilities in perceptual speed, verbal comprehension, numerical aptitude, general reasining and spatial aptitude.
|
|
on-the-job training
|
prepares employees for job duties by allowing them toperform tasks under the guidance of experienced employees
|
|
management development program
|
provides training designed to improve the skills and broaden the knowledge of current and potential executives
|
|
performance appraisal
|
evaluation of an employee's job performance that compares actual results with desired outcomes
|
|
360-degree performance review
|
process that gathers feedback form a review panel of 8 to12 people, including coworker, supervisors, team members, subordinates, ans sometimes customers
|
|
wages
|
compensation base on an hourly pay rate or the amount of output produced
|
|
salary
|
compensation calculated on a periodic basis, such as weekly or monthly
|
|
employee benefits
|
regrades such as retirement plans, health ins. vacation, tuition reimbursement provided for employees either entirely or in part at the company's expense
|
|
401k
|
retirement savings plans to which employees can make pretax contributions to retirement accounts
|
|
flexible benefit plans
|
a range of options to choose from medical ins., dental , vision, life and disability ins
|
|
(PTO) paid time off
|
employees use day form their PTO accounts without having explain why they need the time
|
|
flexible work plans
|
allow employee to adjust their working hours and place of work to accommodate their persona needs such as
flextime, compressed workweeks, jobshare, home based work |
|
flextime
|
scheduling system that allows employees to set their own work hours within constraint specified by the firm
|
|
compressed workweek
|
scheduling option that allows employees to work the regular number of weekly hours in fewer than the typical five days. ( four 10 hour days)
|
|
job sharing
|
allows two or more employees to divide the tasks of one job
|
|
telecommuters
|
home-base workers because the commute to work via telephones, e-mail, computers and fax machines
|
|
downsizing
|
process of reducing the number of employees with a firm by eliminating jobs
|
|
Morale
|
mental attitude of employees toward their employer and job
|
|
Maslow's hierarchy of needs
|
theory of motivation proposed by Abraham Maslow. according to the theory people have five levels of needs that they seek to satisfy: physiological, safety, social, esteem, and self-actualization
|
|
expectancy theory
|
theory that describes the process people use to evaluate the likelihood their effort will yield the desired outcome and how much they want the outcome
|
|
Hygiene factors
(maintenance factors) |
refer to aspects of work that are not directly related to the task itself but related to the job environment, including salary, job security ,personal life, working conditions, status, interpersonal relation, technical supervision and company policies
|
|
motivator factors
|
relate directly to the specific aspects of a job and include achievement, recognition, advancement, the job itself, growth opportunities and responsibility
|
|
equity theory
|
theory concerned with the individuals perception of fair and equitable treatment
|
|
goal
|
target, objective,or result that someone tries to accomplish
|
|
goal-setting theory
|
theory that people will be motivated to the extent to which they accept specific, challenging goals and recieve feed back that indicates their progress toward goal achievement.
|
|
Management by objectives
(MBO) |
a systematic and organized approach that enables mangers to focus on attainable goals and achieve the best result based on the org. resources. helps motivate individuals by aligning their objectives with the goals of the org.
|
|
job enlargement
|
job design that expands an employees responsibilities by increasing the number and variety of tasks assigned to the worker
|
|
job enrichment
|
change in job duties to increase employees authority in planning their work, deciding how it should be done, and learning new skills
|
|
job rotation
|
systematically moving employees form one job to another
|
|
theory x
|
assumes employees dislike work and try to avoid it whenever possible
|
|
theory y
|
assumes that the typical person likes work and learn under conditions to accept and seek responsibilities to social, esteem and self-actualization needs
|
|
Theory z
|
approach view worker involvement as the key to increased productivity for the company and improved quality of work life for employees
|
|
labor union
|
group of workers who have banded together to achieve common goals in the areas of wages, hours, and working conditions
|
|
collective bargaining
|
process of negotiation between management and union representative for the purpose of arriving at mutually acceptable wages and working conditions for employees
|
|
grievance
|
a complaint by a single employee or by the entire union that management is violating some provision of the union contract
|
|
mediation
|
process of settling labor management disputes through recommendations of an impartial third party
|
|
arbitration
|
bringing in an impartial third party, who renders a legally binding decision
|
|
strike (walkout)
|
chief tactics of unions one of the most effective tools of the labor union which is a temporary work stoppage by employees until a dispute has been settled or a contract signed
|
|
picketing
|
workers marching at the entrances of employers business as pubic protest against some management practice
|
|
boycott
|
is an organized attempt to deep the public from purchasing the products of a firm
|
|
lockout
|
management strike to put pressure on union members by closing the firm
|