Questions and Answers
What is a contingent worker?
What are intermediaries?
What is a service business?
A business that carries out activities that are consumed by its consumers.
What does an extractor do?
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What is a manufacturer?
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What is the role of a producer?
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Define proprietorship.
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What characterizes a partnership?
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What is a corporation?
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What is a partnership agreement?
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What are articles of incorporation?
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Define corporate by-laws.
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What is the board of directors?
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What is a limited liability partnership?
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Define a joint venture.
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What is an s-corporation?
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What is a limited liability company?
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Define a nonprofit corporation.
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What is a franchise?
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What is a mission statement?
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Define a goal in a business context.
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What are policies?
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Define procedures.
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What is responsibility?
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What is accountability?
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Define unity of command.
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What is meant by span of control?
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What is an organization chart?
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What is a functional organizational structure?
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Define matrix organizational structure.
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Study Notes
Business Terminology
- Contingent Worker: An employee without a secure contract for long-term employment.
- Intermediaries: Businesses facilitating the sale of producers' goods and services to consumers and other businesses.
- Service Business: Engages in activities that are consumed by customers, providing services rather than goods.
- Extractor: A business that procures natural resources for direct use or for further product development.
- Manufacturer: Converts supplied materials from producers into finished products.
- Producer: Entities responsible for creating products and services utilized by consumers and businesses.
Business Structures
- Proprietorship: A business managed and owned by a single individual.
- Partnership: A business structure owned by two or more individuals operating under a formal agreement.
- Corporation: A legally distinct entity formed through state documentation, offering limited liability.
- Partnership Agreement: A formal document outlining ownership and operational responsibilities in a partnership.
- Articles of Incorporation: Legal document specifying ownership, operational procedures, and business conditions.
- Corporate By-Laws: Set rules outlining the operational procedures of a corporation.
Governance and Liability
- Board of Directors: Group responsible for making major decisions within the business.
- Limited Liability Partnership (LLP): Protects certain investors from losing more than their investments, barring them from management involvement.
- Joint Venture: A temporary business arrangement between multiple businesses for a specific project.
- S-Corporation: Combines limited liability features of a corporation with pass-through taxation for individual owner income.
- Limited Liability Company (LLC): Offers liability protection and simplified organizational requirements compared to corporations.
- Nonprofit Corporation: Formed by individuals to pursue public benefit activities, focusing on sectors like education and healthcare.
Business Operations
- Franchise: A contractual agreement allowing a business to sell products and services under a parent company's brand.
- Mission Statement: A concise declaration of a business's purpose and objectives.
- Goal: A clearly defined outcome that a business aims to accomplish.
- Policies: Established guidelines for decision-making to maintain consistency.
- Procedures: Detailed descriptions outlining how tasks are to be performed.
Accountability and Structure
- Responsibility: Specific work obligations that individuals are expected to complete.
- Accountability: The ownership of results achieved from work performed.
- Unity of Command: A clear chain of command ensuring reporting relationships in the organization.
- Span of Control: Refers to the number of employees managed by a particular supervisor.
- Organization Chart: A visual representation of an organization’s structure, job classifications, and interrelationships.
- Functional Organizational Structure: Arranges work according to primary business functions such as operations and marketing.
- Matrix Organizational Structure: Organizes work based on projects, products, or customer demographics.
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Description
Test your understanding of key business terms in Chapter 5. This quiz covers definitions related to contingent workers, intermediaries, and service businesses. Perfect for students looking to reinforce their knowledge on these essential concepts.