Bus 101 Exam 2

Front 1

What characteristic does the SBA use to determine whether a business is small business?

Back 1

the number of employees, annual sales, and whether a firm is independently owned and not dominant is it field

Front 2

Identify three industries i which small businesses are common

Back 2

construction
wholesale
retail
service industries

Front 3

tho what extend do small businesses help create new fobs

Back 3

three of four new jobs, new industries and innovation goods ans services

Front 4

what percentage of small businesses will still be in business two, four, six and ten years after starting

Back 4

1/3 of 50% , 62% 82% businesses will have failed within two,four, six and ten years

Front 5

How do management shortcomings, inadequate financing, and government regulation make small businesses more likely to fail?

Back 5

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

Front 6

What components should be part of a good business plan

Back 6

contains an executive summary an introduction, separate financial and marketing sections. and the resumes of principals

Front 7

what are the various ways and methods by which the SBA helps small businesses with financing and getting government contracts?

Back 7

The SBA guarantees business loans; helps small businesses compete for government set-aside programs; and provides business information, advice and training

Front 8

distinguish between a franchiser and a franchisee

Back 8

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

Front 9

Name some the largest franchises

Back 9

subway, McDonald's, liberty Tax Service, sonic drive in . Intercontinental hotel group, Ace hardware, pizza hut UPS/mailboxes.

Front 10

Small business

Back 10

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

Front 11

home-based business

Back 11

firms operated form the residence of the business owner

Front 12

business plan

Back 12

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

Front 13

small business administration (SBA)

Back 13

federal agency that aids small businesses by providing management training and consulting, financial asistance, and supported in securing government contractss

Front 14

microloans

Back 14

SBA guarantees of up to 35,000 to start-ups and other very small firms pg 156

Front 15

small business investment company

Back 15

small business loans available through SBA-licensed org. which are run by experience venture capitalists. pg 156

Front 16

set-aside programs

Back 16

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

Front 17

business incubator

Back 17

organization that provides temporary low-cost, shared facilities to small start-up ventures

Front 18

franchising

Back 18

contractual agreement that specifies the methods by which a dealer can produce and market a supplier's good or service.

Front 19

sole proprietorship

Back 19

form of business ownership in which the company is owned and operated by one person

Front 20

partnership

Back 20

form of business ownership in which the company is operated by two or more-people who are co-owners by voluntary legal agreement.

Front 21

corporation

Back 21

business that stands as a legal entity with assets and liabilities separate from those of its owner(s)

Front 22

S corporations

Back 22

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

Front 23

limited liability companies (LLCs)

Back 23

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

Front 24

domestic corporation

Back 24

a firm in the state where it is incorporated

Front 25

foreign corporation

Back 25

when a company does business in states other than the one where it has filed incorporation papers

Front 26

alien corporation

Back 26

firm incorporated in one nation that operates in another

Front 27

stockholder

Back 27

person or organization who owns shares of stock on a corporation

Front 28

corporate charter

Back 28

a legal document that formally establishes a corporation

Front 29

preferred stock

Back 29

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

Front 30

common stock

Back 30

have voting rights
but only residual claims on the firm's assets, (they are the last to receive any income distributions.

Front 31

board of directors

Back 31

elected governing body of a corporation

Front 32

employee ownership
(corp.)

Back 32

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

Front 33

not-for-profit corporation

Back 33

firms pursuing objective other than returning profits to owners

Front 34

merger

Back 34

combination of two or more firms to form one company

Front 35

acquisition

Back 35

procedure in which one firm purchases the property and assume the obligations of another

Front 36

vertical merger

Back 36

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

Front 37

horizontal merger

Back 37

joins firms in the same industry that wish to diversify, increase their customer bases, cut costs, or offer expanded product lines.

Front 38

conglomerate merger

Back 38

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

Front 39

joint venture

Back 39

a partnership between companies formed for a specific undertaking.

Front 40

public ownership

Back 40

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

Front 41

cooperative (co-op)

Back 41

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

Front 42

entrepreneur

Back 42

person who seeks a profitable opportunity and takes the necessary risk to set up and operate business

Front 43

classic entrepreneur

Back 43

person who identifies a business opportunity and allocates available resources to tap that market

Front 44

serial entrepreneur

Back 44

person who starts one business, run it, and then starts and runs additional businesses in succession

Front 45

social entrepreneurs

Back 45

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

Front 46

lifestyle entrepreneur

Back 46

person who starts a business to reduce work hours and create a more relaxed lifestyle

Front 47

seed capital

Back 47

initial funding needed to launch a new venture

Front 48

debit fin acing

Back 48

borrowed funds that entrepreneurs must repay

Front 49

equity financing

Back 49

funds invested in new ventures in exchange for part ownership

Front 50

venture capitalist

Back 50

business firms or groups of individuals that invest in new and growing firms in exchange for an ownership share

Front 51

angel investors

Back 51

wealthy individuals who invest directly in anew venture in exchange for an equity stake

Front 52

intrapreneurship

Back 52

process of promoting innovation within the structure of an existing org.

Front 53

skunkworks

Back 53

project initiated by an employee who conceives an idea and recruits resources form within to turn in into a commercial product

Front 54

pacing programs

Back 54

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

Front 55

electronic business

Back 55

conducting business via the Internet

Front 56

corporate web site

Back 56

web site designed to increase a firm's visibility promote its offerings, and provide information to interested parties

Front 57

marketing web site

Back 57

web site whose main purpose is to increase purchases by visitors

Front 58

business-to-business (B2B) e-business

Back 58

electronic business transactions between organizations using the Internet

Front 59

electronic data interchange (EDI)

Back 59

computer-to-computer exchanges of invoices,purchase order,price quotations. and other sales information between buyers and sellers

Front 60

extranet

Back 60

secure network used for e-business and accessible through an organization's web site; customer, suppliers, and other authorized users

Front 61

private exchange

Back 61

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

Front 62

electronic exchanges

Back 62

online marketplaces that bring buyers and sellers together and cater to a specific industry's needs.

Front 63

e-procurements

Back 63

web-based systems that enable all types of organizations to improve the efficiency of their procurement processes.

Front 64

business-to-consumer (B2C)

Back 64

selling directly to consumers over the Internet

Front 65

electronic storefront

Back 65

company web site that sells products to customers

Front 66

bots

Back 66

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

Front 67

encryption

Back 67

process of encoding data for security purposes

Front 68

secure sockets layer (SSL)

Back 68

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

Front 69

electronic wallet

Back 69

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

Front 70

firewall

Back 70

electronic barrier between a company's internal network and the Internet that limits access into and our of the network

Front 71

phishing

Back 71

high-tech scam that uses authentic looking e-mail or pop-ups ads to get unsuspecting victims to reveal personal information

Front 72

vishing ( voice phishing)

Back 72

scam that involves an e-mail, text message, or telephone call to a consumer supposedly for a credit card company. pg 228

Front 73

channel conflicts

Back 73

disputes between producers, wholesalers, and retailers

Front 74

spam

Back 74

junk e-mail

Front 75

electronic bulletin boards

Back 75

Internet forum used by firms to attract attention by appealing to people who share common interests.

Front 76

Newsgroups

Back 76

noncommercial Internet versions of forums. people post and read messages on specific topics.

Front 77

blog

Back 77

online journal written by a blogger

Front 78

wiki

Back 78

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.

Front 79

podcast

Back 79

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

Front 80

banner ads

Back 80

the most common form of Internet advertising, are typically small messages place in high-visibility areas of frequently visited web sites

Front 81

pop-up

Back 81

separate window that contains d advertising message this type of advertising is some what questionable. many scam artist use these.

Front 82

searching marketing

Back 82

paying search engines, such as google, a fee to make sure that the company's listing appears toward the top of the search results

Front 83

pre-roll video ads

Back 83

an advertiser's short video clip runs as soon as a web page loads. they are usually 15 to 30 seconds long

Front 84

web-to-store

Back 84

group that favors the Internet primarily as a research tool and time-saving device for retail purchases made in stores

Front 85

conversion rate

Back 85

percentage of visitors to a web site who actually make a purchase

Front 86

click-through rate

Back 86

number of visitors who click on a web banner ad

Front 87

display ad

Back 87

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

Front 88

management

Back 88

process of achieving organizational objectives through people and other resources.

Front 89

top management

Back 89

chief executive officer (CEO)
chief financial officer (CFO)
executive vice president

Front 90

middle management

Back 90

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.

Front 91

supervisory management

Back 91

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.

Front 92

technical skills

Back 92

are the ability to understand and use the techniques,knowledge, and tools and equipment of a specific discipline or department.

Front 93

human skills

Back 93

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

Front 94

conceptual skills

Back 94

ability to see the organizations as a unified whole and understand how each part of the overall org. interacts with other parts

Front 95

planning

Back 95

process of anticipating future events and conditions and determining courses of action for achieving organizational objectives.

Front 96

organizing

Back 96

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.

Front 97

directing

Back 97

guiding and motivating employees to accomplish organizational objectives. explaining procedures, issuing orders, seeing the mistakes are corrected.

Front 98

controlling

Back 98

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.

Front 99

vision

Back 99

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

Front 100

strategic planning
six steps

Back 100

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

Front 101

strategic planning

Back 101

process of determining the primary objectives of an org. and then acting and allocating resources to achieve those objectives

Front 102

tactical planning

Back 102

implementing the activities specified by strategic plans

Front 103

operational planning

Back 103

creates the detailed standards that guide implementation of tactical plans

Front 104

contingency planning

Back 104

creates plan to resume operations as quickley and as smoothly as possible after a crisis while openly communicating with the public about what happened

Front 105

mission statement

Back 105

written explanation of an org.. business intentions and aims

Front 106

SWOT analysis

Back 106

org. approach to assessing a company's internal:
S.strengths
W. weaknesses
O. opportunities
T. threats

Front 107

objectives

Back 107

guideposts by which managers define the org. desired performance in such areas as profitability, customer service, growth, and employee satisfaction

Front 108

competitive differentiation

Back 108

unique combination of a company's abilities and approaches that sets it apart from competitors.

Front 109

decision making

Back 109

process of recognizing a problem or opportunity, evaluating alternative solutions, selecting and implementing an alternative and assessing the results

Front 110

programmed decision

Back 110

simple, common , and frequently occurring problems for which solutions have already been determined

Front 111

non programmed decision

Back 111

involves a complex and unique problem or opportunity with important consequences for the org.

Front 112

leadership

Back 112

ability to direct or inspire people to attain org. goals

Front 113

autocratic leadership

Back 113

centered on the boss. make decisions on their own without consulting employees.
Reach decisions, communicate them to subordinates, and expect prompt implementation

Front 114

democratic leadership

Back 114

involves subordinates in making decisions

Front 115

empowerment

Back 115

a practice in which mangers lead employees by sharing power, responsibility, and decision making

Front 116

corporate culture

Back 116

org. system of principles, beliefs, and values

Front 117

free-rein leadership

Back 117

believe in minimal supervision. leave most decisions to their subordinates

Front 118

organization

Back 118

structured grouping of people working together to achieve common goals

Front 119

organization chart

Back 119

visual representation of a firms structure that illustrates job positions and functions

Front 120

departmentalization

Back 120

process of dividing work activities into units within the org.

Front 121

delegation

Back 121

act of assigning work activities to subordinates

Front 122

span of management

Back 122

number of subordinates a manger can supervise effectively

Front 123

centralization

Back 123

retains decisions making at the top of the management hierarchy

Front 124

decentralization

Back 124

locations decision making at lower levels.
trend toward this pushed decision making down to operating impolyees

Front 125

chain of command

Back 125

set of relationships that indicates who directs which activities and who reports to whom

Front 126

line organization

Back 126

the oldest and simplest org. structure, establishes a direct flow of authority form the chief executive to subordinates

Front 127

lin-and-staff organization

Back 127

combines the direct flow if authority of a line org. with staff departments that support the line departments

Front 128

line manger

Back 128

forms part of the primary line of authority that flows throughout the org. functions need to produce ans sell goods and services

Front 129

staff manager

Back 129

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

Front 130

committee organization

Back 130

structure that places authority and responsibility jointly in the hands of a group of individuals rather than a single manger

Front 131

matrix structure

Back 131

links employees form different parts of the org. to work together on specific projects

Front 132

management

Back 132

the use of people and other resources to accomplish org.objectives

Front 133

human resource management

Back 133

function of attracting, developing, and retaining enough qualified employees to perform the activities necessary to accomplish org. objectives

Front 134

affirmative actin programs

Back 134

to increase jog opportunities for women, minorities, disabled people, an other protected groups

Front 135

cognitive ability tests

Back 135

measure job candidates abilities in perceptual speed, verbal comprehension, numerical aptitude, general reasining and spatial aptitude.

Front 136

on-the-job training

Back 136

prepares employees for job duties by allowing them toperform tasks under the guidance of experienced employees

Front 137

management development program

Back 137

provides training designed to improve the skills and broaden the knowledge of current and potential executives

Front 138

performance appraisal

Back 138

evaluation of an employee's job performance that compares actual results with desired outcomes

Front 139

360-degree performance review

Back 139

process that gathers feedback form a review panel of 8 to12 people, including coworker, supervisors, team members, subordinates, ans sometimes customers

Front 140

wages

Back 140

compensation base on an hourly pay rate or the amount of output produced

Front 141

salary

Back 141

compensation calculated on a periodic basis, such as weekly or monthly

Front 142

employee benefits

Back 142

regrades such as retirement plans, health ins. vacation, tuition reimbursement provided for employees either entirely or in part at the company's expense

Front 143

401k

Back 143

retirement savings plans to which employees can make pretax contributions to retirement accounts

Front 144

flexible benefit plans

Back 144

a range of options to choose from medical ins., dental , vision, life and disability ins

Front 145

(PTO) paid time off

Back 145

employees use day form their PTO accounts without having explain why they need the time

Front 146

flexible work plans

Back 146

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

Front 147

flextime

Back 147

scheduling system that allows employees to set their own work hours within constraint specified by the firm

Front 148

compressed workweek

Back 148

scheduling option that allows employees to work the regular number of weekly hours in fewer than the typical five days. ( four 10 hour days)

Front 149

job sharing

Back 149

allows two or more employees to divide the tasks of one job

Front 150

telecommuters

Back 150

home-base workers because the commute to work via telephones, e-mail, computers and fax machines

Front 151

downsizing

Back 151

process of reducing the number of employees with a firm by eliminating jobs

Front 152

Morale

Back 152

mental attitude of employees toward their employer and job

Front 153

Maslow's hierarchy of needs

Back 153

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

Front 154

expectancy theory

Back 154

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

Front 155

Hygiene factors
(maintenance factors)

Back 155

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

Front 156

motivator factors

Back 156

relate directly to the specific aspects of a job and include achievement, recognition, advancement, the job itself, growth opportunities and responsibility

Front 157

equity theory

Back 157

theory concerned with the individuals perception of fair and equitable treatment

Front 158

goal

Back 158

target, objective,or result that someone tries to accomplish

Front 159

goal-setting theory

Back 159

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.

Front 160

Management by objectives
(MBO)

Back 160

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.

Front 161

job enlargement

Back 161

job design that expands an employees responsibilities by increasing the number and variety of tasks assigned to the worker

Front 162

job enrichment

Back 162

change in job duties to increase employees authority in planning their work, deciding how it should be done, and learning new skills

Front 163

job rotation

Back 163

systematically moving employees form one job to another

Front 164

theory x

Back 164

assumes employees dislike work and try to avoid it whenever possible

Front 165

theory y

Back 165

assumes that the typical person likes work and learn under conditions to accept and seek responsibilities to social, esteem and self-actualization needs

Front 166

Theory z

Back 166

approach view worker involvement as the key to increased productivity for the company and improved quality of work life for employees

Front 167

labor union

Back 167

group of workers who have banded together to achieve common goals in the areas of wages, hours, and working conditions

Front 168

collective bargaining

Back 168

process of negotiation between management and union representative for the purpose of arriving at mutually acceptable wages and working conditions for employees

Front 169

grievance

Back 169

a complaint by a single employee or by the entire union that management is violating some provision of the union contract

Front 170

mediation

Back 170

process of settling labor management disputes through recommendations of an impartial third party

Front 171

arbitration

Back 171

bringing in an impartial third party, who renders a legally binding decision

Front 172

strike (walkout)

Back 172

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

Front 173

picketing

Back 173

workers marching at the entrances of employers business as pubic protest against some management practice

Front 174

boycott

Back 174

is an organized attempt to deep the public from purchasing the products of a firm

Front 175

lockout

Back 175

management strike to put pressure on union members by closing the firm