Flashcards in Operating Business Test 1 Deck (31):
0
The principal government agency concerned with the financing operation, and management of
a small business
SMALL BUSINESS ADMINISTRATION
1
Business owned by many users who hire someone to run it
CO-OP
2
• One who organizes, manages and assumes the risk of a business firm
ENTREPRENEUR
3
• A reduction in unit cost achieved by increasing the amount of production
ECONOMY OF SCALE
4
500-1500 employees
Mining or Manufacturing
5
up to 500 employees
Wholesale Trade
6
20-100 employees
Retail Trade
7
25-300 employees
Service
8
Dependency of businesses on one another
Interdependence of business
9
Practice of trying to obtain something that is being sought by others under similar circumstances at the same time
Competition
10
Introduction of something new, a new idea, method, or device
Innovation
11
Developing a comprehensive strategy for meeting future human needs
HUMAN RESOURCE PLANNING
12
The emphasis placed on providing to customers products and services that are safe, reliable
and honestly advertised. Also a social movement that seeks to strengthen the rights of consumers relative to sellers.
Buyer beware vs. seller beware
Caveat emptor vs.caveat venditor
CONSUMERISM
13
Process of acquiring, training, developing, motivating, retaining and appraising a sufficient
quantity of qualified and licensed employees to perform necessary activities.
HUMAN RESOURCE MANAGEMENT
14
Determining of personnel needs in terms of numbers of individuals and their required skills
HUMAN RESOURCE FORCASTING
15
cost of asset less depreciation
Book Value
16
fair market price to purchase similar
Replacement Value
17
market value – value if sold
Liquidation Value
18
This approach centers on estimating the amount of potential income that may be produced by a business in the next year.
Earning Valuation
19
name of the firm – allows extra earnings
Goodwill
20
registered exclusively to reproduce, publish, and sell the work.
Copyright
21
registered right of an invention to sell
Patent
22
branding – exclusive sign or symbol or name
Trademark
23
A group of potential customers possessing purchasing power and unsatisfied needs
MARKET
24
Used to determine where potential customers are located. (would be included in your business
plan)
MARKET SURVEY
25
Statistical study of human populations, with respect to their Population size, density, distribution, composition & income
Demographics
26
Wealth produced in or near a community that is providing employment & income to local population
Economic base
27
a business owned and operated by one person
Sole Proprietorship
28
owned by two or more individuals
Partnership
29
legal entity operating a business according to charter or article of incorporation
Corporations
30