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48 Cards in this Set

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A company similar to an S corporation but without the special eligibility requirements

How many people own a sole proprietorship?

A sole proprietorship is owned by one person

What are the main types of partnerships?

Limited and general


A corporation is a legal entity with authority to act and have liability separate from its owners


A business owned and controlled through pool resources by people who use it

Horizontal Merger

A merger of two firms in the same industry that allows the companies to diversify or expand their products

Limited Liability

The responsibility for a lost only up to the amount invested

It is easy to start and end a sole proprietorship because....

Only one person is involved in decision to dissolve the business

It may only require a simple permit or license to start

Vertical Merger

The joining of two companies involved in different but related levels of an industry

Articles of Incorporation

The legal documents that the creators of a corporation must file with the appropriate state office

Conglomerate Merger

The joining of firms in completely unrelated industries

Board of Directors

Is elected by the stockholders to oversee the general operation of the corporation

Articles of partnership

Each partners management role

Assets each partner has contributed

How profits will be distributed

Limited Liability

Would only be granted to a limited partner. This would not be a general partnership

S corporation

Has the liability protection of a corporation but is taxed on its income at the personal rate of shareholders

Limited partnership

When there's one or more general partners and one or more limited partners


When two firms join together to form one new company

A sole proprietor need skills in...





A legal form of business with two or more owners


Is where one company purchase of the property and obligations of another

Joint Venture

A partnership established for a specific project or for a limited time

Leveraged Buyout

Is an attempt by employees management or a group of investors to purchase an organization primarily through borrowing

Disadvantages of sole proprietorships

Lack of continuty

Unlimited liability

Limited skills of owner

Unlimited Liability

The responsibility of a business owners for all the debts of the business be on the amount of money invested in the firm

The state chartered legal entity with authority to act and have liability separate from its owners


Advantages of a corporation

Easy to transfer ownership

Limited liability

Perpetual life

Advantage of having one or more partners

More skills and knowledge are available

More financial resources are available

Horizontal merger

The joining of two firms in the same industry

Disadvantage of a corporation

Double taxation

Cost of forming a corporation

Shark repellent

AFIRM uses it to fend off a hostile takeover attempt in the firm's management and it requires a large majority of stockholders to approve

Distinction between small businesses and larger firms

Small businesses can develop and introduce a new product in a much shorter time than larger ones

Derek has recently started a small company that provides information technology solutions to larger companies. What will the sure that his small business will be successful?

Having a vision for a long term growth instead of short term success alone

How to small businesses contribute to the economy

Small businesses fuel job creation within a country

What cannot be attributed to small businesses

High success rate

Angela a fresh graduate wants to start a boutique that sells tailor made garments and accessories she plans to open her stores in 3 different malls and employee about 30 people in total to gain financial and managerial assistance. What agency should Angela approach?

Small Business Administration


Develop innovations within the organization in which they are employed

High technology business

Require greater capitals and other small businesses

Advantage of a small business

Small businesses give freedom and flexibility to the owners


Plans are short range plans implemented by the middle management to fulfill objectives specified in the strategic plan

Many firms downsize by blanking production sales and technical positions


Leadership in the context of management

The free reign style of leadership can be a powerful motivator because it demonstrates a great deal of trust and confidence in the employees

Janet the manager of Hollyoaks system was known for her passionate and people friendly ways. Janet knows all her employees well and trust them to do the right thing for the company. Any new project start with an initial briefing from after which the teams are allowed to determine the task and timeline for that project. From time to time Janet gives her input. What type of leader is Janet

Janet is a free reign leader because she lets her employees work without much interference. They're free reign style of leadership can be powerful motivator because it demonstrates a great deal of trust and confidence in the employees


Is the structuring of resources and activities to accomplish objectives in an efficient and effective manner

A detailed schedule for training new employees is most likely to be found in a

Operational plans


Middle management in the context of levels of management

It is responsible for tactical planning that will implement the general guidelines established by top management

Installing a computer virus protection and firewalls is a form of....

Contingency planning


Involves motivating and leading employees to achieve organizational goals

Employee empowerment

Fosters a participative corporate culture beneficial for the firm