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Business Ess. Chpt 3
| Term | Definition |
|---|---|
| small business administration (SBA) | a government agency charged with assisting small businesses |
| small business | independently owned business that has relatively little influence on its market |
| entrepreneur | business person who accepts both the risks and the opportunities involves in creating and operating a new business venture |
| entrepreneurship | the process of seeking businesses opportunities under conditions of risk |
| business plan | document in which the entrepreneur summarizes her or his business strategy for the proposed new venture and how that strategy will be implemented |
| franchise | arrangement in which a buyer (franchisee) purchasing the right to sell the goods of services of the seller (franchiser) |
| venture capital company | group of small investors who invest money in companies with rapid growth potential |
| small-business investment company (SBIC) | government-regulated investment company that borrows money from the SBA (small business administration - a government agency charged with assisting small businesses) to invest in or lend to a small business |
| small-business development center (SBDC) | SBA (small business administration - a government agency charged with assisting small businesses) program designed to consolidate information from various disciplines and make it available to small businesses |
| sole proprietorship | business owned and usually operated by one person who is responsible for all of its debts |
| unlimited liability | legal principle holding owners responsible for paying off all debts of a business |
| general partnership | business with two or more owners who share in both the operation of the firm and the financial responsibility for its debts |
| limited partnership | type of partnership consisting of limited partners and a general (or managing) partner |
| limited partner | partner who does not share in a firm's management and is liable for its debts only to the limits of said partner's investment |
| general (or active) partner | partner who actively manages a firm and who has unlimited liability for its debts |
| master limited partnership | form of ownership that sells shares to investors who receive profits that pays taxes on income from profits |
| cooperative | form of ownership in which a group of sole proprietorships and/or partnerships agree to work together for common benefits |
| corporation | business that is legally considered an entity separate from its owners and is liable for its own debts: owners' liability extends to the limits of their investments |
| limited liability | legal principle holding investors liable for a firm's debts only to the limits of their personal investments in it |
| tender offer | offer to buy shares made by a prospective buyer directly to a target corporation's share holders, who then make individual decisions about whether to sell |
| double taxation | situation in which taxes may be payable both by a corporation on its profits and by share holders on dividend incomes |
| closely held (or private) corporation | corporation whose stock is held by only a few people and is not available for sale to the general public |
| publicly held (or public) corporation | corporation whose stock is widely held and available for sale to the general public |
| S corportion | hybrid of a closely held corporation and a partnership, organized and operated like a corporation but treated as a partnership for tax purposes |
| limited liability corporation (LLC) | hybrid of a publicly held corporation and a partnership in which owners are taxed as partners but enjoy the benefits of limited liability |
| professional corporation | form of ownership allowing professionals to take advantage of corporate benefits while granting them limited business liability and unlimited professional liability |
| multinational (transnational) corporation | form of corporation spanning national boundaries |
| corporate governance | roles of shareholders, directors, and other managers in corporate decision making and accountability |
| stock holder (or shareholder) | owner of shares of stock in a corporation |
| board of directors | governing body of a corporation that reports to its shareholders and delegates power to run its day-to-day operations while remaining responsible for sustaining its assets |
| officers | top management team of a corporation |
| chief executive officer (CEO) | top manager who is responsible for the overall performance of a corporation |
| strategic alliance | strategy in which two or more organizations collaborate on a project for mutual gain |
| joint venture | strategic alliance in which the collaboration involves joint ownership of the new venture |
| employee stock ownership plan (ESOP) | arrangement in which a corporation holds its own stock in trust for its employees, who gradually receive ownership of the stock and control its voting rights |
| institutional investor | large investor, such as mutual fund or a pension fund, that purchasing large blocks of corporate stock |
| merger | the union of two corporation to form a new corporation |
| accusation | the purchase of one company by another |
| divestiture | strategy whereby a firm sells one or more of its business units |
| spin-off | strategy of setting one or more corporate units as new, independent corporations |
Created by:
shelaynecarter
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