lists chapter 6,7,8 Flashcards by unknown unknown

what are the 6 advantages to a sole proprietorship?

easy and inexpensive to form

profits are retained by the owner

direct control of the business

freedom from government regulation

taxed once

ease of dissolution

How well did you know this?

Not at all

Perfectly

what are the 7 disadvantages of a sole proprietorship?

unlimited liability
difficulty raising capital
limited managerial expertise
trouble finding qualified employees
personal time commitment
unstable business life (limited lifespan)
losses are the owners responsibility
few fringe benefits

How well did you know this?

Not at all

Perfectly

what are the 3 forms of partnerships?

general partnership
limited liability partnership
limited partnership

How well did you know this?

Not at all

Perfectly

what are the 6 advantages of a partnership?

more financial resources

shared management and pooled, complementary skills and knowledge

longer survival

shared risk

special taxes

flexibility

How well did you know this?

Not at all

Perfectly

what are the 5 disadvantages of a partnership?

unlimited liability
division of profits
disagreements among partners
difficulty of termination
possibility of higher taxes

How well did you know this?

Not at all

Perfectly

what are the 5 types of corporations?

private
public
non-profit
professional corporations
crown corporations

How well did you know this?

Not at all

Perfectly

what are the 7 advantages to a corporations?

limited liability

more money for investment

size: may be larger due to increased resources

perpetual life

ease of ownership change

ease of attracting talented employees

separation of ownership from management

How well did you know this?

Not at all

Perfectly

what are the 6 disadvantages of corporations?

high initial costs
extensive paperwork
double taxation
two tax returns
termination is difficult
stock holder and board conflict

How well did you know this?

Not at all

Perfectly

what are the 5 ways of corporate expansion?

a merger
an acquisition
a vertical merger
a horizontal merger
a conglomerate merger

How well did you know this?

Not at all

Perfectly

what are the four reasons why mergers do not work?

companies overpay to acquire another firm

acquiring company overestimates cost saving and synergies

after merger, managers disagree about integrating operations

after merger, cost cutting obsession hurts business

How well did you know this?

Not at all

Perfectly

what are the 6 things the franchisee agrees to in the franchise agreement?

to follow the franchisor’s operating rules

keeping inventory at certain levels,

buying a standard equipment package,

keeping up sales and service levels

taking part in franchisor promotions

maintaining relationship with the franchisor

How well did you know this?

Not at all

Perfectly

what are 5 things the franchisor agree to in a franchise agreement?

franchisor provides the use of a proven company name and symbols

provides training

provides management assistance

provides employee training

provides financial assistance

How well did you know this?

Not at all

Perfectly

what are the 5 responsibilities of a franchisor?

assign territory

may provide financial aid/advice

offers merchandise or supplies at a competitive price

provides training and support

business expansion

How well did you know this?

Not at all

Perfectly

what are the 4 responsibilities of a franchisee?

pay upfront costs

make monthly or annual payments to the franchisor (royalty fee)

runs business by franchisors rules and procedures

buys materials from franchisor or approved supplier

How well did you know this?

Not at all

Perfectly

what are the 5 advantages to franchises?

management and marketing assistance

personal ownership

nationally recognized name

financial advice and assistance

low failure rate

How well did you know this?

Not at all

Perfectly

what are the 6 disadvantages to franchises?

large start up cost

shared profit

management regulations

coattail effect

restrictions on selling

fraudulent franchisors

How well did you know this?

Not at all

Perfectly

what are the 4 ways to avoid disaster in a franchise?

Study These Flashcards

research officers and their business experience

get all summary of any bankruptcy and litigation

estimate ALL costs to set up a franchise

review franchise contract and three most recent financial statments

what are the 4 ways entrepreneurial ventures differ from small business?

Study These Flashcards

amount of wealth creation
speed of wealth creation
risk
innovation

what are the 6 reasons people take the entrepreneurial challenge?

Study These Flashcards

opportunity presents itself (to fill a customers needs, or they have a skill or resources)

new idea, product or product
profit
challenge
family pattern
independence

what are the four types on entrepreneurs?

Study These Flashcards

classic entrepreneurs
micropreneurs
multipreneurs
intrtapreneurs

what are the 5 reasons small business is important?

Study These Flashcards

contribute to growth in specific areas of the economy

create jobs

spark innovation

best route to success

compliment the economic activity of large organizations by providing them with services

what are 10 potential small businesses?

Study These Flashcards

home renovation services
pet products and services
catering services
cleaning services
events management services
E-commerce
beauty services
sewing and alteration services
business/life coach services
online course creators

what are the 7 advantages of a small business?

Study These Flashcards

independence

personal satisfaction from work

best route to success

rapidly changing technology

major corporate restructuring and downsizing

outsourcing

small business are resilient

what are the 5 disadvantages of small business?

Study These Flashcards

financial risk
stress
time commitment
undesirable duties
limitations

what are the 3 causes for small business success?

pay attention to competition business in a growth industry product is not easily replicated

what are the 12 things that can lead to small business failure?

plunging in without first testing testing the waters on a small scale underpricing or overpricing goods or services underestimating how much time it will to take to build a market staring with too little capital starting with too much capital and being careless in its use going in to business with little or no experience and without first learning something about the industry or market borrowing money without planning how and when to pay it back not allowing for setback and unexpected setbacks buying to much on credit extending credit to freely expanding credit too rapidly failing to complete accurate records

what are the four ways to get into your first business venture?

start your own company buy an existing franchise unit inherit or take over a family business get some experience from another company

what are the five functions of managing a small business?

planning the business financing the business knowing the customers (marketing) managing the employees maintaining records (accounting)

what are the details (4) of a written business plan?

nature of the business target market advantages the business will have over competition and the resources qualifications of the owners

what are the 10 key elements of a business plan?

cover letter executive summary company background management team financial plan capital required marketing plan location analysis manufacturing plan appendix

what are the three basic categories of managerial skills?

technical human relations conceptual skills

what are the 4 functional areas of management?

planning organizing leading controlling

what are the three things that are in a company vision?

goals objectives plans

what is a SWOT analysis?

how strengths can be capitalized on how weakness can be improved how opportunities can be exploited how strengths can be mitigated

what are the 4 planning strategies?

strategic planning tactical planning operational planning contingency planning

what are the 5 steps in the decision making process?

recognize or define the problem or opportunity gather information to identify alternative solutions or actions select one or more alternatives after evaluating the strengths and weakness of each possibility put chosen alternative into action gather information to obtain feedback on the effectiveness of the chosen plan

what are the 4 intrinsic values leaders are motivated?

needs desires motive will power

what are the 5 kinds of power?

legitimate power reward power coercive power expert power referent power

what are the three leadership styles?

autocratic participative/ democratic free rein

what are the 5 steps of the controlling function of management?

establish clear performance standards monitor actual performance compare performance results against plans and standards communicate results to the employees involved take corrective action when needed and provide positive feed back

what is the difference between the intent of small business and the intent of entrepreneurship?

small business is fine remaining small and does try to innovate and grow to become a larger company or corporation entrepreneurship may start small but the intention is to grow to a large scale company corporation and revolutionize the market

what is management?

the process of guiding the development and allocation of resources to attain organizational goals

lists chapter 6,7,8 Flashcards

(42 cards)