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A customer must have:
purchasing power
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Advantages & disadvantages of a sole proprietorship & a corporation.
Advantages: Very little red tape, simplest & cheepest way of starting a business, low cost organization, freedom to manage, profit incentives: profits add to personal income & losses can be deducted from personal income for tax purpose.
Disadvantages: Unlimited Risk, Limited Life (continuity), Limited size, raising money is limited, collateral loans require a co-signer
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What governs purchasing power?
unsatisfied needs, money-available funds.
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What is associated with an area's economic base?
Wealth produced in an area by employment
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Angels:
Private investors who are willing to supply financing for new & or risky small venture startups
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Better Business Bureau:
Association of business firms that promotes ethical conduct by all business firms in the community
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Business policies:
Fundamental statements that serve as guides to management practice
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C Corporation:
An ordinary corporation taxed by the federal goverment as a separate legal entity
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Competition:
The practice of trying to obtain something that is being sought by others under similar circumstances at the same time.
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Consumerism:
The emphasis placed on providing to customers products and services that are safe, reliable, and honestly advertised; also a social movement that seeks to strengthen the rights of consumers.
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Corporation
A legal form of organization whereby a legal entity is authorized by a state to operate a business under the entity's charter or articles of incorporation
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Customer profile
A description of potential customers in a target market
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Delegation of authority:
A superior's act of granting to subordinates on the basis of competence the right to act or decide
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Direct forecasting
A forecasting method in which sales is the estimated variable
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Economic base
The wealth produced in or near a community that provides employment and income to the local population
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General partner
A partner in a limited partnership who has unlimited personal liability
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indirect forecasting
a forecasting method in which variables related to sales are used to project future sales
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Limited liability company
a new form of business ownership that combines the aspects of partnerships with the limited liability of a corporation; owners are known as memebers
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limited partner
a partner is a limited partnership who is not active in its management and has limited personal liability
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market
a group of potential customers possessing purchasing power and unsatisfied needs
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market survey/analysis
a study that is used by a business to determine where the potential customers are located. The process of locating & describing potential customers
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marketing
the process of planning and executing the development, pricing, promotion, and distribution of an organizations goods or services
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marketing mix
the combination of product, pricing, promotion and distribution activities
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modified book value
determination of the value of a business by adjusting book value to reflect obvious differences between the historical cost and the current market value of the assets
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partnership
a form of legal organization in which a business association made up of two or more persons is formed for theprupose of carrying on as co-owners
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S Corporation (Subchapter S corporation)
a type of corporation that offers limited liability to its owners but is taxed by the federal government as a partnership
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Sales forecast
a prediction of how much of a product or service will be purchased within a market during a specified time period
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Sole proprietorship
a legal form of organization whereby the business is owned & operated by one person
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