Upgrade to remove ads
DECA Entrepreneurship Flashcards
Business Essentials, Fifth Canadian Edition
Terms in this set (109)
The purchase of a company by another, larger firm, which absorbs the smaller company into its operations.
board of directors:
A group of individuals elected by a firm's shareholders and charged with overseeing, and taking legal responsibility for, the firm's actions.
Document in which the entrepreneur summarizes her or his business strategy for the proposed new venture and how that strategy will be implemented.
chief executive officer (CEO):
The person responsible for the firm's overall performance.
An organization that is formed to benefit its owners in the form of reduced prices and/or the distribution of surpluses at year-end.
Shares whose owners usually have last claim on the corporation's assets (after creditors and owners of preferred stock) but who have voting rights in the firm.
A merger of two firms in completely unrelated businesses.
The relationship between shareholders, the board of directors, and other top managers in the corporation.
Occurs when a company sells part of its existing business operations to another company.
employee stock ownership plan (ESOP):
when a corporation buys its own stock with loaned funds and giving them to its employees. Employees "earn'' the stock based on some condition such as seniority. Employees control the stock's voting rights immediately, even though they may not take physical possession of the stock until specified conditions are met. This aligns the employees' interest with those of the shareholders, as they are shareholders themselves.
A business person who accepts both the risks and the opportunities involved in creating and operating a new business venture.
a form of business by which the owner (franchisor) of a product, service or method obtains distribution/marketing through affiliated dealers (franchisees). example: mcdonalds
Specifies the duties and responsibilities of the franchisee and the franchiser.
An acquisition in which the management of the acquired company welcomes the firm's buyout by another company.
A partner who is actively involved in managing the firm and has unlimited liability.
A merger of two firms that have previously been direct competitors in the same industry.
An acquisition in which the management of the acquired company fights the firm's buyout by another company.
initial public offering (IPO):
Selling shares of stock in a company for the first time to the general investing public.
Members of a corporation's board of directors who are also full-time employees of the corporation.
Investor liability is limited to their personal investments in the corporation; courts cannot touch the personal assets of investors in the event that the corporation goes bankrupt.
A partner who generally does not participate actively in the business, and whose liability is limited to the amount invested in the partnership.
The union of two companies to form a single new business.
An enterprise that the owner operates part-time from the home while continuing regular employment elsewhere.
Members of a corporation's board of directors who are not also employees of the corporation on a day-to-day basis.
A corporation that owns a subsidiary.
A business with two or more owners who share in the operation of the firm and in financial responsibility for the firm's debts.
Shares whose owners have first claim on the corporation's assets and profits but who usually have no voting rights in the firm.
A business whose stock is held by a small group of individuals and is not usually available for sale to the general public.
A business whose stock is widely held and available for sale to the general public.
An independently owned and managed business that does not dominate its market.
Business owned and usually operated by one person who is responsible for all of its debts.
Strategy of setting up one or more corporate units as new, independent corporations. The corporation that does the spin off is a parent corporation. (division of a business, type of divestiture)
A share of ownership in a corporation.
stockholders (or shareholders):
Those who own shares of stock in a company.
An enterprise in which two or more persons or companies temporarily join forces to undertake a particular project.
One that is owned by another corporation.
an offer to purchase some or all of shareholders' shares in a corporation. The price offered is usually at a premium to the market price.
A person who invests in a business is liable for all debts incurred by the business; personal possessions can be taken to pay debts.
A merger of two firms that have previously had a buyer—seller relationship.
capturing the business's day-to-day financial activities in pursuit of an organization's goals.
If a business negotiates a 3.6% discount rate and has credit card sales this month of $78,450, what
amount does it owe the bank?
D. $2,824.20 - Correct
banks that offer service to the general public and companies
borrowing money and not giving up ownership, comes with interest and strict rules
a business's current assets that are listed on financial statements are
What is the base amount used for vertical analysis of items on the income statement?
a common risk of innovation is
Loss of jobs
the purchase of a controlling share in a company
cash flow statement
a financial statement that shows the movement in the Cash account of a company. It presents cash inflows (receipts) and outflows (payments) in the three activities of business: operating, investing, and financing
The act of committing money or capital to an endeavour with the expectation of obtaining an additional income or profit
the act of providing funds/capital for business activities, making purchases or investing and help them achieve their goals
a financial statement that summarizes a company's assets, liabilities and shareholders' equity at a specific point in time. These three balance sheet segments give investors an idea as to what the company owns and owes, as well as the amount invested by shareholders.
Assets = Liabilities + Shareholders' Equity
a piece of property or equipment purchased exclusively or primarily for business use.
categories of assets: current and non-current, short-term and long-term, operating and capitalized, and tangible and intangible
a company's financial debt or obligations that arise during the course of its business operations
the net value of a company, or the amount that would be returned to shareholders if all the company's assets were liquidated and all its debts repaid
convert assets into cash or cash equivalents by selling them on the open market
person or organization that provides capital for a company
a method of financial statement analysis in which each entry for each of the three major categories of accounts (assets, liabilities and equities), in a balance sheet is represented as a proportion of the total account
a fall in economic growth just before recession
Net sales are the amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any discounts allowed
A paradigm shift is a major change in how some process is accomplished. A paradigm shift can happen when new technology is introduced that radically alters the production process of a good
a legal doctrine by which the sovereign or state cannot commit a legal wrong and is immune from civil suit or criminal prosecution
the right of a government or its agent to expropriate private property for public use, with payment of compensation
a special right, advantage, or immunity granted or available only to a particular person or group of people
act of breaking the law or agreements in a contract
consideration (in contract)
a benefit which must be bargained for between the parties, and is the essential reason for a party entering into a contract
National Labor Relations Act
an act protecting rights of employees and employers, encouraging collective bargaining (negotiation of wages and other subjects by a group fo employees)
vocational rehabilitation act
prohibits discrimination on the basis of disability in programs conducted by Federal agencies
fair labor standards act
establishes minimum wage, overtime pay, record-keeping, and youth employment standards affecting employees
Americans with disabilities act
a civil rights law that prohibits discrimination based on disability
a corporation whose ownership shares are available for exchange on a public market
combining small companies into one large one
a company that buys materials from other manufacturers to satisfy their own needs
promoters who are third-parties to a business, like a partner or affiliate, rather than a company's personnels
a person who represents a person or company in matters of business and who can make business decisions, agreements, etc., for them
a governing principle that mandates or constrains actions within a business
An agreement in writing between two or more individuals or entities in which a court can impose penalties in the event one party attempts to negate on his or her promise
what are the three main factors in feasibility study?
1. staffing needs
2. return on investment
3. raw material needs
short-term plans for a business
long-term plans for a business
analyzing a group of potential customers and collecting information on them
what factors should a small business owner consider when hiring someone?
necessary skills and affordability and productivity needs
a limited or fixed number or amount of people or things, in particular
the credit extended to you by suppliers who let you buy now and pay later
return on equity
the ability of a company to generate income with their investments
when determining its hiring needs, a business must consider its
financial status and productivity needs
wants such as entertainment or leisure
needs such as food, shelter
a notice that the direct deposit transaction has gone through
chain of a business, starbucks is a corporate chain
a system of production, resource allocation, and distribution of goods and services within a society or a given geographic area
regular measurement of outcomes and results, which generates data on the effectiveness and efficiency of programs
measure of central tendency
mean, median, mode
9 in 3,9,27
the part of supply chain management that plans the flow and storage of goods/services between the point of origin and the point of consumption in order to meet customer's requirements
accountable, responsible, consultive, informed. it defines roles and responsibilities
a type of contest where a prize or prizes may be awarded to a winner or winners. (kind of like a gamble)
a partial refund to someone who has paid
The action of overseeing and managing employees in the workplace. (low)
middle level managment
they implement company strategy in the most efficient way. are higher in power than supervisory, but lower than execs.
a panel that organizes and presents information in a way that is easy to read
the stage in a venture where the entrepreneur decides on the business's future growth, development or demise.
wealth in the form of money or property, used or accumulated in a business by a person, partnership or corporation
a legal right granted to a business for exclusive production/sale/distribution of a good/service
exclusive right granted by the government to an inventor to manufacture sell or use an invention for a certain number of years
the condition of having several interdependent and interconnected stakeholders, information technology systems and organizational structures
The typically hierarchical arrangement of lines of authority, communications, rights and duties of an organization.
Organizational structure determines how the roles, power and responsibilities are assigned, controlled, and coordinated
how information flows between the different levels of management
the study, design, implementation, support or management of computer-based information systems. IT typically includes hardware, software, databases and networks
a procedure, process, method, or course of action designed to achieve a specific result in business. Creating effective business systems is the only way to attain results that are consistent, measurable, and ultimately benefit customers.
THIS SET IS OFTEN IN FOLDERS WITH...
DECA Entrepreneurship Exam
DECA entrepreneurship test
YOU MIGHT ALSO LIKE...
Ch 8 Economics
ME Ch. 33, 35
chapter 4 and 5 essentials of business
OTHER SETS BY THIS CREATOR
DECA Business Finance Flashcards
DECA Quick-Serve Restaurant Management Flashcards
DECA Business Management & Administration Flashcar…
DECA Hospitality & Tourism Flashcards