BUSN 101 - Chapter 5

A

100

A business that is independently owned and operated that is limited in size and revenue

What is a small business?

200

A form of private equity and a type of financing that investors provide to start-up companies and small businesses that are believed to have long-term growth potential

What is venture capital?

300

An ongoing fee that the franchisee pays to the franchisor, typically calculated as a percentage of gross sales

What are royalties?

400

An intangible asset that includes the value of a business's name, reputation, customer/employee relations, etc.

What is goodwill?

B

100

People who assume the risk of business ownership

What are entrepreneurs?

200

A type of license that one party acquires to allow them to have access to a business's proprietary knowledge, processes and trademarks 

What is a franchise?

300

Lump sum payment paid by the franchisee to the franchisor upon signing the franchise agreement

What is the initial franchisee fee?

400

U.S. government agency that provides support to entrepreneurs and small businesses

What is the Small Business Administration (SBA)?

C

100

A written document describing how a business defines its objectives and how it will go about achieving its goals

What is a business plan?

200

Privately-owned company that's licensed and regulated by the SBA and invests in small businesses in the form of debt and equity

What are small-business investment companies (SBICs)?

300

Cooperative effort of private sector, educational community and federal/state/local governments that provide small businesses with management and technical assistance

What are small business development centers (SBDCs)?

400

Programs offered in cooperation with colleges and universities to provide management consulting

What are Small-Business Institutes (SBIs)?

D

100

The parent company in a franchise agreement

What is the franchisor?

200

Network of volunteer expert business mentors who assist new or small businesses

What is SCORE?

300

Modest business operations intended to provide the owner(s) with a comfortable livelihood

What are lifestyle businesses?

E

100

In a franchise agreement, the person who purchases the license to do business on the local level

What is the franchisee?

200

Injury to a franchisee's reputation due to the actions of another franchisee

What is the "Bad Apple Syndrome"?

300

Businesses that are begun from scratch

What are start-up companies?