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37 Cards in this Set
- Front
- Back
- 3rd side (hint)
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What is the SBA?
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Government agency charged with assisting small businesses.
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What is a small business?
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Independently owned business that has relatively little influence in the market.
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Why are small businesses important?
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Job Creation, Innovation, and Contributions to Big Business.
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What are the popular areas of small business?
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Services, Retail, Construction, Wholesale, Finance and Insurance, Manufacturing, Transportation.
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What is an Entrepreneur?
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Entrepreneurs are people who assume the risk of business ownership.
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What is entrepreneurship?
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The process of seeking business opportunities under conditions of risk.
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Entrepreneurial Characteristics
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Resourcefulness, a concern for good customer relations, the ability to deal with uncertainty and risk, a desire to be their own bosses, to have greater control over their lives, and to build for their families.
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Ways to start a small business
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1. Buy an Existing Business.
2. Franchise 3. Start from Scratch |
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What is a Franchise?
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Arrangement in which a buyer purchases the right to sell goods or service of the seller.
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Small Businesses owned by Women and Minorities.
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48% increase in African American owned businesses (1.2M total).
31% increase in Hispanic owned businesses (1.6M total). 24% increase in Asian owned businesses - 64% pacific Islanders. 11 Million Businesses owned by women. |
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What is a Sole Proprietorship?
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Business owned and usually operated by one person who is responsible for all of its debts.
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Disadvantages of Sole Proprietorship?
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Unlimited Liability, and a Lack of Continuity.
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What are the types of corporations?
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Private Corporation, Public Corp, S Corp, Limited Liability Corp (LLC), Professional Corp, and Multinational Corp.
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What is the difference between a private and public corporation?
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Private Corporations are where stock is held only by a few people, and are not for sale.
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What is an S Corporation?
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Hybrid of a closely held corporation and a partnership, organized and operated like a corporation but treated as a partnership for tax purposes.
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What is an LLC?
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Owners are taxed like partners, but also enjoy the benefits of limited liability.
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Hybrid of a publicly held corporation and a partnership in which owners are taxed as partners but enjoy the benefits of limited liability
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What is a professional corporation?
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Most likely composed of doctors, lawyers, accountants, etc. Corporate structure protects from unlimited financial liability, but not the members.
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Form of ownership allowing professionals to take advantage of corporate benefits while granting them limited business liability and unlimited professional liability.
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What is a multinational corporation?
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One where stock may be traded on the exchanges of several countries, and managers are likely to be of different nationalities.
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Form of corporation spanning national boundaries.
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Who are the three bodies identified in bylaws?
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Stockholders, Board of Directors, and Officers.
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What is globalization?
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The process by which the world economy is becoming a single interdependent system.
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What is an Import?
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product made or grown abroad but sold domestically.
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What is an export?
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product made or grown domestically but sold abroad
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What are the four distinctions the World Bank makes on wealth?
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1. High Income Countries
2. Upper Middle-Income Countries 3. Lower Middle-Income Countries 4. Low-income countries |
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Geographic Clusters
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North America
Europe Pacific Asia |
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What countries are in Pacific Asia?
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Japan, China, Thailand, Malaysia, Singapore, Indonesia, South korea, Taiwan, The Phillipines, and Australia.
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What is the WTO?
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World Trade Organization is the organization through which member nations negotiate trading agreements and resolve disputes about trade policies and practices.
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What is the precursor to the WTO?
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GATT - General Agreement on Trades and Tariffs.
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What are the 3 WTO Goals?
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1. Promote Trade by encouraging members to adopt fair trade practices.
2. Reduce trade barriers by promoting multilateral negotiations. 3. Establish fair trade procedures for resolving disputes among members. |
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What is Balance of Trade?
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The total economic value of all the products it exports minus the products it imports.
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What is a Surplus?
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Positive Balance of Trade
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What is a Deficit?
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Negative Balance of Trade
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What is Balance of Payments?
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the flow of all money into or out of a country.
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What are the forms of Competitive Advantage?
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1. Absolute Advantage
2. Comparative Advantage 3. National Competitive Advantage |
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What is absolute advantage?
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An absolute advantage is when a country can produce something that is cheaper and/or higher quality than any other country.
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What is comparative advantage?
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A country that can produce goods more efficiently or better than other nations has a comparative advantage.
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What is a national competitive advantage?
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National Competitive Advantage comes from 4 conditions:
1) Factor Conditions 2) Demand Conditions 3) Related and Supporting Industries 4) Strategies, Structures, and Rivalries. |
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What steps to take when going international?
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1. Gauging International Demand
2. Adapting to Customer Needs 3. Outsourcing and Offshoring |
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