Vocabulary
carries out activities that are consumed by its customers
service business
a business owned and run by just one person
proprietorship
A dentist is an example of a(n)
Service business
What are the 3 major forms of business ownership?
Proprietorship, Corporation, Partnership
An effective business begins with what?
a clear purpose and the application of key principles for organizing work
where the direction for a business comes from
mission statement
a written agreement among all owners
partnership agreement
A wave of retirements started in 2011 as the first group of _____ , the people born between 1946 and 1964.
baby boomers
Decision-Making is shared among managers, the board of directors, and shareholders. This is a disadvantage of which business ownership?
Corporation
_____ is the obligation to complete specific work.
_____ is the right to make decisions about how responsibilities should be accomplished.
_____ is taking responsibility for the results achieved.
Responsibility, Authority, and Accountability.
a diagram that shows the structure of an organization, classifications of work and jobs, and the relationships among those classifications
organization chart
a written contract granting permission to operate a business to sell products and services in a set way
franchise
List groups other than the US, that will go through higher employment growth rates over time.
Asian, Hispanic, African-American
True or False?
An S corporation offers the unlimited liability of a corporation.
False.
An S Corporation offers the limited liability of a corporation.
True or False?
An organization chart is a diagram that shows the structure of an organization, the classification of work and jobs, and the relationships among those classifications.
True
a written legal document that defines ownership and operating procedures and conditions for the business
articles of incorporation
guidelines used in making consistent decisions
policies
State the Percent of Businesses by Employment Size:
Owner Only
1-19 Employees
20-99 Employees
More than 100 Employees
72.04%
24.01%
3.27%
0.67%
Which ownership(s) does the limited liability company combine?
Corporation and Partnership
True or False?
The direction for a business comes from its policies and procedures
True
one who has no explicit or implicit contract for long -term employment.
contingent worker
a separate legal entity formed by documents filed with a state
corporation
What is the most important role of businesses?
To make and distribute products and services needed by consumers, government, and other businesses.
Which ownership provides a tax advantage for the owner?
Proprietorship
Functional Organization Structure