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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

Limited Liability Corporation

LLC