Intro to Business Chapter 5

• Baby Boomers


  born between 1946-1964 and around 65
• What are 6 Pressures on Employment

  downsizing jobs

  reducing

  wages decrease

  need second jobs

  unable to spend time with families

  leads to contigent worker
• Contingent Worker


  one who has no explicit or implicit contract for long-term employment
• List groups that will increase as a percentage of the total U.S workforce

  younger workers (16-24 years of age)

  asian, hispanic, african-american groups

  women
• Size of U.S businesses

  19.5 million just owners working in business
• Roles of business

  make and distribute products and services

  provide employment - wages

  pay taxes to government
• Impact on a community

  money to spend
• 6 Business Activities

  generate ideas

  raising capital

  employing and training personnel

  buy goods and services

  market goods and services

  maintain business records
• Producers

  creates the products and services used by individuals and other businesses
• Extractor

  takes recourses from nature for direct consumption or for use in developing other products
• Manufacturer

  gets supplies from other producers and convert them into products
• Intermediaries

  business involved in selling the goods and services of producers to consumers and other businesses
• Service Business

  carries out activities that are consumed by its consumers
• 60% of all US employment is service-producing businesses
• Proprietorship

  business owned and run by just one person
• Requirements of Proprietorship

  easiest to start and end

  very few legal requirments

  sole control

  responsible for all debts
• Partnership

  business owned and controlled by two or more people who have entered into an agreement
• Requirements for Partnership

  both are responsible for business decisions

  liable for debt
• Corporation

  separate legal entity formed by documents filed with a state
• Requirements of Corporation

  owned by one or more shareholders

  managed by the Board of Directors

  difficult to start

  meet legal requirements

  no access to profits unless the Board of Directors approves
• What are the differences between the three main forms of business ownership?

  who makes the decisions and investing, who is responsible for debt
• Partnership Agreemet

  written agreement among all owners
• Articles of Incorporation

  written legal document
• Limited Liability Partnership (LLP)

  identifies some investments who cannot lose more than the amount of their investment
• Joint Venture

  unique business organized by two or more businesses to operate for a limited time foe a specific project
• S Corporation

  offers the limited liability of a corporation, taxed individually
• Limited Liability Company (LLC)

  provides liability protection for owners
• Nonprofit Corporation

  group of people that join together to do some activity that benefits public
• Cooperatives

  owned by its members
• Franchisee

  company purchasing the rights to run the business
• Franchiser

  company that owns the product or service and grants the rights to another business
• Mission statement

  its short, specific written statement of the reason a business exists what it wants to achieve
• Goal

  a precise statement of results that business expects to achieve
• policies

  guidelines used in making consistent decisions
• Procedures

  descriptions of the way work is to be done
• Responsibility

  obligation to complete specific work
• Authority

  right to make decisions about how responsibilities should be accomplished
• Accountability

  taking responsibility for the results achieved
• Unity of Command

  clear reporting relationship for all staff of a business
• Span of command

  the number of employees who are assigned to a particular work task and manager