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Chapter 5 Terms

1. Employment Data- how many people work. Baby boomers


refer to the large # of people born between 1946 and 1964.
2. Pressures on Employees- pressure to get things done at work.
3. Contingent Worker- one who has no explicit or implicit
contract for long-term employment.
4. Size of Businesses- talks about the size of businesses. Most
businesses are small.
5. Roles of Business- play several key roles. They provide
employment, and help with the economy, pay taxes.
6. Impact on Community- businesses provide a stable
community.
7. Business Activities- generating ideas, raising capital,
employing and training personnel, buying goods and services,
marketing goods and services and maintaining business
records.
8. Generating Ideas- they begin with a new idea or product.
9. Raising Capital- raise money to start a business.
10. Employing and Training-they recruit, hire, and train
employees; they pay wages, benefits, and employment taxes.
11. Buying Goods and Services-businesses have to buy goods and
services, which they use for their own operation. For ex.
Manufacturers of automobiles must buy steel, aluminum, and
plastics to be used to form the frame and body of new cars.
12. Marketing Goods and Services- they have to advertise their
goods or services.
13. Maintain Business Records- they have to come up with some
type of record-keeping system and keep all records of
important information, what they sell, etc.
14. Producers- create the products and services used by
individuals and other businesses. They are responsible for
using resources to make something that is needed by others.
15. Extractor- a business that takes resources from nature for
direct consumption of for the use in developing other
products. They pump oil, mine coal or cut timber.
16. Farmers- cultivate land and use other natural resources to
grow crops and livestock for consumption.
17. Manufacturers- get supplies from other producers and convert
them into products. They sell products to consumers and
other businesses.
18. Intermediaries- are businesses involved in selling the goods
and services of producers to consumers and other businesses.
Common intermediaries- retailers and whole-sellers.
19. Service Business- they offer something that is intangible.
20. Sole Proprietorship- a business owned and run by just one
person. The easiest way to start out making a business and
most businesses start out this way.
21. Partnership- is a business owned and controlled by two or
more people who have entered into a written agreement.
22. Corporation- a separate legal entity formed by documents
filed with your state.
23. Partnership Agreement- a written agreement among all
owners.
24. An article of Incorporation- is a written legal document that
defines ownership and operating procedures and conditions
for businesses.
25. Franchise- is a written contract granting permission to operate
a business to sell products and services in a set way.
26. Mission Statement- the direction for a business. A short,
specific written statement of the reason a business exists and
what it wants to achieve.
27. Goals-is a precise statement of results the business expects to
achieve. Are used to define what needs to be accomplished
and to determine if the business is successful.
28. Policies- guidelines used in making consistent decisions.
29. Procedures- are descriptions of the way work is to be done.
30. Responsibility, Authority, and Accountability- responsibility is
the obligation to complete specific work. Authority is the right
to make decisions about how responsibilities should be
accomplished. Accountability is taking responsibility for the
results achieved.
31. Unity of Command- means there is a clear reporting
relationship for all staff of a business.
32. Span of Control- is the number of employees who are
assigned to a particular work task and manager.
33. Organization Chart- is a diagram that shows the structure of
an organization, classifications of work and jobs, and the
relationships among those classifications.
34. Functional Organization Chart- work is arranged within main
business functions such as production, operations, marketing
and human resources. All of the people with jobs related to
one of the functions will work together.
35. Matrix
Organization Chart- work is structured around specific
project, products, or customer groups. People with varied
backgrounds are assigned together because their expertie is
required for the project or to serve the customer.

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