Study the 6 business activities for your Business exam. This guide covers operations, marketing, finance, human resources, information technology, and administration.
Q: 1992-2002
Answer: Increase in employment 17%Expected to reach 165 million employed by 2012
Q: Contingent Workers
Answer: The one who has no explicit or implicit contract for long term employment5% of workforce is made up of contingent workers
Q: 2002 business worldwide produced 32 trillion of goods and services
Answer: US is responsible for 1/3 of that production
Q: Size of Businesses
Answer: most US businesses are quite small-about 5 million companies employ less than 20 people-just over 500,000 employ 20-100 people-about 103,000 large US businesses employ 100 or more workers
Q: Roles of Business
Answer: they provide employment for millions of people-employee wages are used to purchase goods and services-profits earned by businesses are used to compensate owners and investors-most important role of businesses is to make and distribute products and services needed by consumers, government, and other businesses
Q: Impact on a Community
Answer: a business can have an important impact on the community in which it operates-business opens, it pays wages to its workers-it buys goods and services from other businesses in the area-this money has not been in the community before
Q: Business Activities
Answer: -businesses may be large or small, simple or complex-all businesses perform six basic activities1) Generating Ideas2) Raising Capital3) Employing and training personnel4) buying goods and services5) marketing goods and services6) maintain business records
Q: Generating Ideas
Answer: -a business begins with a new idea.-they must continue to improve and develop new ideas in order to remain successful-remain competitive with other firms that sell similar goods and services
Q: Raising Capital
Answer: -businesses need financial resources to operate-they use these financial resources to buy buildings and equipment, hire and train workers, and complete day-to-day business operations
Q: Employing and Training Personnel
Answer: -businesses need human resources-businesses have procedures for recruiting, hiring, and training employees
Q: Buying Goods and Services
Answer: -all businesses buy goods and services-businesses purchase services from other companies
Q: Marketing Goods and Services
Answer: without marketing, even the best products and services may remain unsold
Q: Maintain Business Records
Answer: -all businesses must have some type of record-keeping system-businesses are required by government to keep records and submit information-technology is available to make record keeping easy and accurate
Q: Types of Businesses
Answer: ProducersIntermediariesService Businesses
Q: Producers
Answer: create the products and services used by individuals and other businesses
Q: Intermediaries
Answer: are businesses involved in selling the goods and services of producers to consumers and other businesses-most common types are retailers and whole sellers
Q: Service Businesses
Answer: carries out activities that are consumed by its customers-these include dentist, physicians, and lawyers(make least money)
Q: Proprietorship
Answer: is a business owned and run by just one person-it is the easiest form of business to start and end-very few legal requirements-sole control over all business decisions-all profits receive by owner
Q: Partnership
Answer: -is a business owned and controlled by two or more people who have entered into a written agreement-very similar to the proprietorship in several ways-everything is split-investment and profits are based on the terms of the partnership agreement-each partner is liable for all of the debts of the business should it fail
Q: Corporation
Answer: is a separate legal entity formed by documents filed with your state-owned by one or more shareholders and managed by a board of directors-have several owners who invest in the business by purchasing shares of stock-hard to form
Q: Proprietorship pt 2
Answer: Easiest to formOwner receives all productsMust pay all debts from personal savingsFew legal requirementsBusiness debts can be used to take any personal money or assets
Q: Partnership pt 2
Answer: 2 or more people in written agreementEverything is split, personal debt, start up cost, and profiteach owner is responsible for the other owners decisions
Q: corporation pt 2
Answer: legal entity filled through stateowner by shareholders and board of directorsmore legal responsibilitiesno personal liabilitylimited liability partnership = no say but share of profits and debt
Q: Articles of Incorporation
Answer: A written legal document that defines ownership and operating procedures and conditions for the business.
Q: Corporate Bylaws
Answer: Operating procedures for the corporation
Q: The percentage of white labor force is expected to raise greatly over 5-10 years
Answer: false
Q: The most important role of business is to provide employment for people
Answer: false
Q: All businesses buy goods and services
Answer: true
Q: Service paying jobs are the lowest paying in the Us economy
Answer: false
Q: Most states require a proprietorship to register a business name
Answer: false
Q: A corporations owners have access to profits only if the board of directors approves it
Answer: true
Q: A goal is a precise statement of results the business expects to achieve
Answer: true
Q: Baby boomers have dominated the labor market since the
Answer: 1960’s
Q: Over the next ten years the number of temporary workers is expected to
Answer: double
Q: what percent of businesses have no other workers other than the owner
Answer: almost 80%
Q: A business organized by 2 or more people to run for a specific amount of time
Answer: joint venture
Q: the direction for a business comes from its
Answer: corporate bylaws
Q: obligation to complete specific work
Answer: responsibility
Q: matrix organizational structure
Answer: work is structured around particular projects, products, or customer groups
Q: The operation procedures for a corporation
Answer: corporate bylaws
Q: automobile factory
Answer: producer
Q: guidelines used in making specific decisions
Answer: policies
Q: groccery store
Answer: intermediary
Q: a written contract allowing permission to operate a business
Answer: franchise
Q: description of the way work is to be done
Answer: procedures
Q: organizational chart
Answer: shows structure and relationship within business