Ch 19 Klicker Flashcards Preview

mors 200 Marketing > Ch 19 Klicker > Flashcards

Flashcards in Ch 19 Klicker Deck (19):
1

Small business

A business that is independently owned and operated and not dominant in its field.

2

Entrepreneur

One who organizes, manages, and assumes the risk of the business firm

3

Number of employees

Manufacturing: 500-1500
Wholesale trade: 500
Retail trade: 20-100
Services: 25-300

4

Qualitative sales criteria

Actively managed by owners, highly personalized, largely local in its area, largely dependent on internal sources of capital to finAnce its growth, not dominant in the industry

5

Manufacturing

Business that makes finished goods from raw materials by hand or machinery

6

Merchandising

Business that purchases goods for resale

7

Services

Business that provides a service as opposed to a product

8

Economic contributions of small businesses

Interdependence of business

Stimulating economic competition

Innovation

9

Sole proprietorship

One person conducting a business. Held personally liable for all his/her acts and staff.

Advantages: ease of starting, low cost, freedom to manage, profit incentive

Disadvantages: unlimited risk, limited size, life, and management ability

10

General partnership

Two or more people as co-owners. Personally liable for the obligations of the business

11

Limited partnership

General partners and partners with a limited interest. Liability is limited to the amount of capital invested.

12

Advantage and disadvantages of partnerships:

Advantages: combined management, talent and capital, easy to form, efficiency of labor

Disadvantages: lack of continuity, decisions binding, frozen investments

13

Corporations

Legal entities established under state law.

Profit corporations have shareholders and are formed under the states business corporation act.

Advantages: continuity in existence, ease of ownership, limited liability, large financial capability.

Disadvantages: legal restrictions, separation of control, lack of personal interest, double taxation of earnings

14

Economic contributions of small businesses

Interdependence of business

Stimulating economic competition

Innovation

15

Sole proprietorship

One person conducting a business. Held personally liable for all his/her acts and staff.

Advantages: ease of starting, low cost, freedom to manage, profit incentive

Disadvantages: unlimited risk, limited size, life, and management ability

16

General partnership

Two or more people as co-owners. Personally liable for the obligations of the business

17

Limited partnership

General partners and partners with a limited interest. Liability is limited to the amount of capital invested.

18

Advantage and disadvantages of partnerships:

Advantages: combined management, talent and capital, easy to form, efficiency of labor

Disadvantages: lack of continuity, decisions binding, frozen investments

19

Corporations

Legal entities established under state law.

Profit corporations have shareholders and are formed under the states business corporation act.

Advantages: continuity in existence, ease of ownership, limited liability, large financial capability.

Disadvantages: legal restrictions, separation of control, lack of personal interest, double taxation of earnings