Ch. 3: Intro To Business Management

Front 1

Small Business Administration

Back 1

Federal Agency charged with assisting small business

Front 2

small business

Back 2

independently owned and managed business that does not dominate its market

Front 3

entrepreneur

Back 3

businessperson who accepts both the risks and the opportunities involved in creating and operating a new business venture

Front 4

business plan

Back 4

document in which the entrepreneur summarizes her or his business strategy for the proposed new venture and how that strategy will be implemented

Front 5

venture capital company

Back 5

group of small investors who invest money in companies with rapid growth potential

Front 6

small-business investment company

Back 6

government-regulated investment company that borrows money from the SBA to invest in or lend to a small business

Front 7

small business development center

Back 7

sba program designed to consolidate information from various disciplines and make available to small businesses

Front 8

franchise

Back 8

arrangement in which a buyer (franchisee) purchases the right to sell the good or service of the seller (franchiser)

Front 9

sole propietorship

Back 9

business owned and usually operated by one person who is responsible for all of its debts

Front 10

unlimited liability

Back 10

legal principle holding owners reponsible for paying off all debts of a business

Front 11

general partnership

Back 11

business with two of more owners who share in both the operation of the firm and the financial responsibility for its debts

Front 12

limited partnership

Back 12

type of partnership consisting of limited partners and an active or managing partner

Front 13

limited partner

Back 13

partner who does not share in a firm's management and is liable for its debts only to the limits of said partners investment

Front 14

general (or active) partner

Back 14

partner who actively manages a frim and who has unlimited liability for its debts

Front 15

corporation

Back 15

business that is legally considered an entity separate from its owners and is liable for its own debts; owners liability extends to the limits of their investment

Front 16

limited liability

Back 16

legal principle holding investors liable for a firm's debts only to the limits of their personal investments

Front 17

tender offer

Back 17

offer to buy shares made by a prospective buyer directly to a target corporation's shareholders, who then make individual decisions about whether to sell

Front 18

double taxation

Back 18

situation in which taxes mayh be payable both by a corporation on its profits and by shareholders on dividend incomes

Front 19

closely held (private) corporation

Back 19

corporation whose stock is held only by a few people and is not available for sale to the general public

Front 20

publicly held corporation

Back 20

corporation whose stock is widely held and available for sale to the general public

Front 21

s corporation

Back 21

hybrid of a closely held corporation and a partnership, organized and operated like a corporation but treated as a partnership for tax purposes

Front 22

limited liability corporation

Back 22

hybird of a publicly held corporation and a partnership in which owners are taxed as partners but enjoy the benefits of limited liability

Front 23

professional corporation

Back 23

form of ownership allowing professionals to take advantage of corporate benefits while granting them limited business liability and unlimited professional liability

Front 24

mulitnational or transnational corporation

Back 24

form of corporation spanning national boundaries

Front 25

corporated governanve

Back 25

roles of shareholders, directors, and other managers in corporate decision making

Front 26

stockholder or shareholder

Back 26

owner of shares of stock in a corporation

Front 27

stock

Back 27

share of ownership in a corporation

Front 28

preferred stock

Back 28

stock that offers its holders fixed dividends and priority claims over assets but no corporate voting rights

Front 29

common stock

Back 29

stock that pays dividends and guarentees corporate voting rights but offers last claims over assets

Front 30

board of directors

Back 30

governing body of a corporation that reports to its shareholders and delegates power to run its day-day operations while remaining responsible for sustaining its assets