Vocabulary
The Top Manager of an organization.
CEO- Chief Executive Officer
business owned and run by one person who is responsible for all of its debts.
Sole ProprietorSHIP
A segment of the market that is not currently being served
Niche`
Government agency tasked with helping small businesses
SBA - Small Business Administration
Business with two or more owners who share in operation and financial responsibility for the business.
General PartnerSHIP
Arrangement in which a buyer purchases the right to sell the good or service of the seller
Franchise
arrangement where a company holds its own stock in trust for its employees, who gradually receive ownership of the stock and voting rights
ESOP - Employee Stock OwnerSHIP Plan
A union of two companies to become a new company
Merger
a group of small investors who invest money in companies with rapid growth potential.
Venture Capital Company
You can hold investors responsible but only to the limit of their personal investment in it.
Limited Liability
Type of partnership consisting of limited partners and general (or managing) partners
Limited PartnerSHIP
Governing body of an organization, reports to the Shareholders and delegates power to run the day to day operations while remaining responsible for its assets.
Board of Directors
Hard Work, Demand, Competence and Sometimes Luck
Reasons for Success of a Business.
Strategy where a firm sells off one or more of its business units
Divestiture
form of ownership that sells shares to investors who receive profits and pays taxes on the income from the profits.
Master Limited PartnerSHIP
large investor such as a mutual fund or pension plan that purchases large blocks of corporate stock
Institutional Investor
When two or more companies collaborate on a project for mutual gain
Strategic Alliance
Inexperience/Incompetence, Neglect, Weak Systems and Not enough $
Reasons for failure of a business.