Midterm 3 Flashcards
(128 cards)
1
Q
What is a sole proprietor?
A
it is an easy way to start a business, easy and adaptable with full control
2
Q
What are the challenges to come with sole proprietorship?
A
Risk personal exposure, credibility, and raising capital
3
Q
Who is responsible for debts in a sole proprietorship?
A
owners of sole proprietors have unlimited liability and risk; they are legally responsible
4
Q
What type of business allows owners to combine talents and resources to gain access to more opportunities?
A
Partnerships
5
Q
What is a state-charted legal entity that carries liability separate from owners?
A
Corporations
6
Q
What is the main difference between a corporation and a partnership?
A
A partnership has unlimited liability, limited life, single taxation
A corporation has limited liability, unlimited life, double taxation
7
Q
When in a partnership, what gives all partners authority and risks dragging other partners into bad decisions?
A
Mutual Agency
8
Q
What type of partnership has unlimited liability, mutual agency, and share risk/reward?
A
General Partnerships
9
Q
What type of partnership has no mutual agency, limited liability, and does not share risk/reward?
A
Limited Partnerships
10
Q
What combines the advantages of a corporation and partnership?
A
Limited Liability Company (LLC)
11
Q
What does LLC offer and avoid?
A
Offers: limited liability, flexibility, pass though taxation
Avoids: double taxation, unlimited liability, corporate structure
12
Q
What are corporations legally required to do?
A
Create wealth for owners
13
Q
What are three types of corporations?
A
Domestic, Foreign, Alien
14
Q
Which corporations strive for a sustainable future objective?
A
Benefit (B) Corps
15
Q
People, Planet, and Profit refers to?
A
Triple Bottom Line
16
Q
What type of stock gives voting rights and residual claim on assets?
A
Common Stock
17
Q
What type of stock gives no voting power but has first claim on assets?
A
Preferred Stock
18
Q
What type of firm is made up of the combination of two firms?
A
Merger
19
Q
What is it called when a firm buys another firm?
A
Acquisition
20
Q
What looks like a corporation but is taxed like a sole proprietorship?
A
S Corporation
21
Q
Who creates a new business in the face of risk and uncertainty to achieve profit and growth?
A
Entreprenuers
22
Q
What tool exploits change as an opportunity?
A
Innovation
23
Q
___________ is a part of the entrepreneurial process
A
Failure
24
Q
Who stimulates innovation and creativity within a large established organization?
A
Intrapreneurs
25
What type of analysis determine how attractive an industry is for new businesses?
Opportunity Analysis
26
What type of analysis answers to question of whether a business idea should move forward?
Feasibility Analysis
27
What type of analysis determines the degree to which a product/service appeals to consumers?
Product/Service Analysis
28
What type of analysis looks at capital requirements, estimated earnings, and return on investments?
Financial Analysis
29
What systematically evaluates the chances for a business's success and serves as a "road map" for a business?
Business Plan
30
What is the personal investment owners put in a firm?
Equity Capital
31
What do investors assume when investing in a new company?
The risk of losing money (Risk Capital)
32
What is often the most common first source of money for starting businesses?
Personal Savings
33
Which type of investors are best when a company has outgrown the capacity of family and friends but comes at the exchange for stocks?
Angel Investors
34
What is the first time a firm sells stock to the public?
Initial public offering (IPO)
35
Who creates goals, maintains the status quo and directs employees?
Managers
36
Who creates a vision, changes agents, take risks, and coaches employees?
Leaders
37
What are the 4 functions of management?
Planning, Leading, Organizing, and Controlling
38
Which function sets goals and standards, develops strategies, and determines resources?
Planning
39
Which function guides and motivates employees, gives assignments, routines, policies, and feeback?
Leading
40
Which function prepares a structure of authority, trains and recruits employees, and established procedures to establish goals?
Organizing
41
Which function measures results, rewards performance, and takes corrective action?
Controlling
42
What is the outline of a firms fundamental purpose?
Mission Statement
43
What gives a firm a sense of purpose and a set of values?
Vision
44
What type of analysis looks at internal strengths and weaknesses?
SWOT anaylsis
45
What type of analysis looks at external opportunities and threats?
SWOT Analysis
46
Which form of planning involves setting broad long-term goals?
Strategic Planning
47
Which form of planning develops short-term objectives and answers what is to be done, who does it, and how it is done?
Tactical Planning
48
Which form of planning sets standards and schedules necessary to implement firm's objectives?
Operational Planning
49
Which form of planning creates back up plans for when goals and objectives aren't achieved?
Contingency Planning
50
What is the free movement of people, goods, services, and capital across international borders?
Globalization
51
Which organization polices the world trading system?
World Trade Organization
52
What maintains order in the global money system?
International Monetary Fund
53
Buying from another country is an example of...
Importing
54
Selling to another country is an example of...
Exporting
55
What is the idealized movement of goods and services without economic or political barriers?
Free Trade
56
What process involves a firm obtainning goods and services from an outside or foreign supplier?
Outsourcing
57
What is the comparison of the value of exports to the value imports?
Balance of Trade
58
When the value of exports is greater than the value of imports...
Trade Surplus (good)
59
When the value of exports is less than the value of imports...
Trade Deficit (bad)
60
What forces can affect trade?
Sociocultural, economic, legal, environmental
61
Are there global regulations on trade?
No, each country has its own laws and regulations
62
What provides rights to manufacture a product to a foreign company for a fee?
Licensing
63
What sells rights for idea/name and to sell product in a given area?
Franchising
64
What is it called when a foreign company produces private label goods to which a domestic company attaches trademark?
Contact Manufacturing (outsourcing)
65
What is a partnership in which 2 or more firms join to undertake a major project?
Joint Venture
66
What is a partnership that helps each other build a competitive advantage?
Strategic Alliance
67
What is it called when permanent property is bought in a foreign nation?
Foreign Direct Investment
68
What is the tax on imported goods?
Tariffs
69
What is one way governments can increase their revenue and protect domestic producers?
Tariffs
70
What is a government payment to domestic producers?
Subsidies
71
What is the direct restriction on quantity of imported goods?
Import quota
72
What is the interference of a foreign market by selling goods below fair market price?
Dumping
73
What is a regional group of countries with common external tariffs and coordinated laws?
Common Market
74
What are the 3 levels of ethical standards?
Legal, Organizational Polices/Procedures, Moral Stance
75
Where does ethics start?
From the top
76
The rights to safety, be informed, choose, be heard are ...
Rights of Consumers
77
What are some roots of unethical behavior?
personal ethics code, culture, ignorance, unrealistic goals, unethical leadership
78
What established new enhanced standards for US company boards, management, and accounting firms?
Sarbanes-Oxley Act 2002
79
What established comprehensive regulation of financial markets, tighter regulation of credit rating agencies, and consumer protection reform?
Dodd-Frank Act 2010
80
What are the accepted principles of right or wrong in governing the conduct of business people?
Business Ethics
81
What governs product liability?
Tort Laws
82
What governs contracts and breaches of contracts?
Contract Laws
83
What provides protection of ideas?
Intellectual Property Laws
84
What governs competitive behavior?
Antitrust Laws
85
What governs the issuing and selling of securities?
Securities Laws
86
Embezzlement, information manipulation, anticompetitive behavior, environmental degradation are examples of ...
Ethical issues that prioritize the bottom line
87
Which philosophy dictates the responsibility to profit lawfully?
Fredman Doctrine
88
Which philosophy dictates that responsibility falls on those that are affected by company decisions?
Stakeholder Theory
89
What is an externality?
When other people pay bills for firm's impact on society
90
This ethic code prevents unlawful behavior through increasing control and penalizing...
Compliance-Based
91
This ethic code prevents unlawful behavior through guiding values, environment, and shared accountability...
Integrity-Based
92
What requires private property, freedom of choice, right to keep profits, and fair competition?
Private Enterprise
93
How does the government intervene to ensure a private enterprise?
Through laws and industry regulations
94
What is established by judges when setting disputes?
Common Law
95
What is enacted by federal and state legislature?
Statuary Law
96
What are regulations created by federal and state administrative agencies?
Administrative Law
97
Which branch of government enforces laws?
Judiciary
98
What law involves disputes between government and individuals and can result in fines or imprisonment?
Criminal Law
99
What law involves disputes between two individuals and results in fines?
Civil Law
100
Are the owners of a corporation affected when said corporation is taken to court?
No because corporations are their own single entity separate from owners
101
Assault, slander, libel, fraud and product liability are examples of
Torts
102
False investments and hurting someone through deception and manipulation are examples of
Fraud
103
Which dispute resolutions involve binding or non-binding results?
Arbitration
104
Which dispute resolutions involves only non-binding results?
Mediation
105
What type of property includes real estate and permanently attached property?
Real Property
106
What type of property includes tangle and intangible items?
Personal Property
107
What type of property includes items made by a person's creative activity?
Intellectual Property
108
What are the exclusive rights to an invention in exchange for public disclosure?
Patents
109
How long do patents last?
20 years
110
What are the exclusive rights to symbols, name, sounds, and brand?
Trademark
111
What are the exclusive rights to documents?
Copyright
112
What is a legally enforceable agreement between 2 or more parties?
Contract
113
Legal purpose, consideration, and voluntary agreement make up...
Elements of a Contract
114
Minors, intoxicated, coerced, mentally unstable, and insane lack...
Contractual Capacity
115
What law gives debtor a fresh start by relieving debts?
Bankruptcy
116
What seeks to harmonize commercial transactions across states?
Uniform Commercial Code (UCC)
117
What describes the rationale for how an organization creates, delivers, and captures value?
Business Model
118
Which segment includes needs, solutions, customer satisfaction, and value?
Value Proposition
119
Which segment includes who and why questions?
Consumer Segment
120
Which segment includes the movement of product from company to consumer?
Channel
121
Which segment includes how to get, grow, and keep customers?
Customer Relationships
122
Why is it most important to maintain current customers?
Current customers are the best source of revenue, referrals, and new ideas
123
Which segment includes strategies to make money from customers?
Revenue
124
Which segment includes most important assets required to make a business work?
Key Resources
125
Which segment includes most important supplies and partners to make a business work?
Key Partnerships
126
Which segment includes production, problem solving, and supply chain management?
Key Activities
127
Which segment includes the cost to operate a business?
Cost Structure
128
What is a tool for communication and growth?
Business Model Canvas
