Operating Business Test 1 Flashcards
Business owned by many users who hire someone to run it
CO-OP
The principal government agency concerned with the financing operation, and management of
a small business
SMALL BUSINESS ADMINISTRATION
• One who organizes, manages and assumes the risk of a business firm
ENTREPRENEUR
• A reduction in unit cost achieved by increasing the amount of production
ECONOMY OF SCALE
500-1500 employees
Mining or Manufacturing
up to 500 employees
Wholesale Trade
20-100 employees
Retail Trade
25-300 employees
Service
Dependency of businesses on one another
Interdependence of business
Practice of trying to obtain something that is being sought by others under similar circumstances at the same time
Competition
Introduction of something new, a new idea, method, or device
Innovation
Developing a comprehensive strategy for meeting future human needs
HUMAN RESOURCE PLANNING
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
Process of acquiring, training, developing, motivating, retaining and appraising a sufficient
quantity of qualified and licensed employees to perform necessary activities.
HUMAN RESOURCE MANAGEMENT
Determining of personnel needs in terms of numbers of individuals and their required skills
HUMAN RESOURCE FORCASTING
cost of asset less depreciation
Book Value
fair market price to purchase similar
Replacement Value
market value – value if sold
Liquidation Value
This approach centers on estimating the amount of potential income that may be produced by a business in the next year.
Earning Valuation
name of the firm – allows extra earnings
Goodwill
registered exclusively to reproduce, publish, and sell the work.
Copyright
registered right of an invention to sell
Patent
branding – exclusive sign or symbol or name
Trademark
A group of potential customers possessing purchasing power and unsatisfied needs
MARKET
