HU-Chapter 2 Review

Articles of Incorporation

• The contract between partners of a business that defines obligations and responsibilities of the business owners.

• The potential for an owner to lose more than has been invested in a business.

• A document describing the business that is filed with the state in which a business is formed.

• Forces that occur outside of the business that affect the business and its owner.

Harvest

• The stage when the owner removes him or herself from the business. Harvesting a business can be thought of as picking the fruit after years of labor.

• Achievement of a critical mass in the business, a point at which an adequate living is provided for the owner, with enough growth remaining to keep the business going.

• A specific event or occurrence that sparks the entrepreneur to proceed from thinking to doing.

• A specific event or occurrence that sparks the entrepreneur to proceed from thinking to doing.

A document describing the business that is filed with the state in which a business is formed.

• ESOP

• Articles of Partnership

• Articles of Incorporation

• IPO

C Corporation

• A corporation owned by a limited group of people. Its stock is not traded publicly.

• A separate legal entity that reports its income and expenses on a corporate income tax return and is taxed on its profits at corporate income tax rates.

• A business structure in which the business owners share the management and risk of the business.

• A partnership that is created to complete a specified purpose and is limited in duration.

Environmental Factors

• A person’s belief concerning the degree to which internal or external forces control his or her future.

• The personal quality, linked to entrepreneurship, of being motivated to excel and choose situations in which success is likely.

• Achievement of a critical mass in the business when an adequate living is provided for the owner with enough growth remaining to keep the business going.

• Forces that occur outside of the business that affect the business and its owner.

ESOP

• Employees Sharing Organizational Profits

• Employee Stock Ownership Plan

• Employees Saving Organizational Profits

• Employee Shared Ownership Plan

Small Business Management

• The process of identifying opportunities for which marketable needs exist and assuming the risk of creating an organization to satisfy them.

• An association of two or more persons to carry on as co-owners of a business for profit.

• A person’s belief concerning the degree to which internal or external forces control his or her future.

• The ongoing process of owning and operating an established business.

The stage when the owner removes him or herself from the business. Harvesting a business can be thought of as picking the fruit after years of labor.

• Maturity

• Harvest

• Implementation

• Growth

Maturity

• The stage of the organization when the business is considered well established.

• The stage when the owner removes him or herself from the business. Harvesting a business can be thought of as picking the fruit after years of labor.

• Achievement of a critical mass in the business, when an adequate living is provided for the owner with enough growth remaining to keep the business going.

• The personal quality, linked to entrepreneurship, of being motivated to excel and choose situations in which success is likely.

Articles of Partnership

• A business structure in which the business owners share the management and risk of the business.

• The contract between partners of a business that defines obligations and responsibilities of the business owners.

• A document describing the business that is filed with the state in which a business is formed.

• A specific event or occurrence that sparks the entrepreneur to proceed from thinking to doing.