Chapter 5 Terms

Chapter 5 Terms 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. 1.

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.