most widely used form of business in the world; treated as separate legal entities from its shareholders, so they have the ability to sue or be sued, are capable of holding assets in its own name, can sign contracts and have the ability to make by-laws, which govern its internal affairs

any person, company or other institution which owns at least one share in a company (also known as a stockholder)

item of ownership having an exchange value

money or debt owed

when a corporation makes a profit, it pays a federal corporate income tax on it, and then if the company declares a dividend, the stockholders must report it as personal income and pay more taxes

general corporations which have elected a special tax status with the IRS after the corporation has been formed; most appropriate for small business owners and entrepreneurs who prefer to be taxed as if they were still sole proprietors or partners

made up of social security taxes and Medicare taxes

provides benefits for certain retired, disabled or deceased workers and their families

pays for the medical expenses of most people over the age of 65

created to encourage exports and improve the balance of trade

an entity which is controlled by another entity (or parent company)

outstanding capital of a company or corporation

fall under either a C corporation, an S corporation or a partnership depending on how it decides to be treated for taxation when it is first formed; are treated as a separate legal entity from its owners (members) just like in a corporation

any form of communication a business or organization uses to inform, persuade or remind individuals about its products or services

term used to describe the set of tools a business uses to effectively communicate the benefits of its products or services to its customers

a form of paid non-personal promotion used to inform, persuade or remind customers about a specific product, company or idea

composed of the methods and activities used to establish and promote a positive relationship with the public

the processes associated with providing incentives to customers in order to stimulate demand for a product

oral communication with potential buyers of a product with the intention of making a sale

the combination of strategies and cost-effective allocation of resources in order to create the desired promotional outcome for a business

the words and images you use to appeal to a target market

the unique layout and focus of each type of promotion

Rivalry between two or more companies within the same industry

Occurs when a company operates in a more efficient manner than its competitors, which causes their sales to increase above other businesses

Stands for strengths, weaknesses, opportunities, and threats; a useful tool in helping a comp[any determine where they stand compared to their competition

A design for a company or organization in order to reach its long-term goals through planning organizing, execution and controlling of activities

Positive, internal factors that can be controlled within a business

Making links and establishing a mutually beneficial relationship with other business people

Distinguishes the organization's product or service from competitors because of certain unique characteristics

Negative, internal factors that a company can control

Items (materials) used in the production of a good

A favorable, external factor companies cannot control

A specific group of consumers to whom a company aims the selling of its products or services

Negative or unfavorable external factors that affect businesses and their level of competitiveness

Helps companies to analyze their industry and determine their level of competitiveness

Pertains to how much power a supplier has as far as increasing the prices of supplies and merchandise a company purchases from them

Pertains to how much power customers have as far as driving down the prices of products and services

The amount of power a company has in the market in relation to their competitors

Determines the ability and likelihood of customers finding another way to either make or provide the services or products a company offers

The percentage of a firm's total sales in relation to the industry as a whole

A paid message sent from a company to the public in order to introduce a new product or service, or present existing merchandise

can be identified as a good or service

cannot be touched, tasted, seen or felt; are performed as an "action"

are the physical, or tangible, items available for customers to purchase

do not include a tangible product; are the primary "product" of a business

include services which correspond to a physical product

refers to the decisions and processes used to create a "product mix"

allows businesses to create new marketing opportunities; helps to evaluate the success or failure of current products

name, tern or symbol used to identify related products

creates a specific image for a product or company; helps to position a product within a given market

provides critical product information

refers to the way a product works or looks; can help to sell a product based on specific features

should appeal to the product's target market; may change based on consumer preferences

related to the parts, materials or construction elements of a product

process of maintaining product standards

consist of a small group of employees who identify methods for product improvement in an informal and constructive manner

conducted by employees, equipment, auditors and inspectors; should occur at each stage of the production process

group of related items or brands sold by the same company

occur when there are additional product divisions or product categories

consist of offering the right combination of products within a given line

describes a specific brand or individual product within a line

includes all the products a company makes or sells

cycle through which every product goes through from launch to expiration; stages are 1. introduction 2. growth 3. maturity 4. decline

refers to the number of available items offered in each product line

refers to the number of different product lines a business produces

process of creating new or improved products; involves brainstorming, designing, building, testing and marketing products; includes creating a physical model or sample of the product

consists of brainstorming new product ideas

includes evaluating product ideas and feasibility

includes evaluating design factors and influences

working model or sample of a product

allows companies to control product quality and production; is conducted within the actual company

includes input, decisions and work from businesses and individuals outside of the actual company

include a selected group of people used to analyze and test the concept of a given product

include marketing or selling a product in an exclusive area; are used to determine potential demand for a product

process of gathering, analyzing and collecting information about a particular target market, competitor or product

includes introducing a product to the marketplace

includes a complete revision or new model of an item

consists of making slight variations or changes to an original product

type of management that trusts employees' work ability, has a high workload and is confident

type of management that involves the group and facilitates teamwork

type of management that is a micromanager, a teacher and a facilitator

type of leadership driven by authority; tells others what to do, limits discussions, new ideas and group teamwork

type of leadership that involves the group and promotes a sense of teamwork

type of leadership that gives little or no direction; gives opinions only upon request and has no "in charge" position

occurs within an organization

occurs between one organization and an outside party

when a sender selects and organizes message to be sent

when the receiver breaks down the message received and interprets the message received

the response the receiver provides to the sender's message, can be verbal or nonverbal

first section of a business plan; highlights proposed business and financial data; should convince the audience to read the rest of the plan

second section of a business plan; includes details such as business type, business philosophy, product description, self-analysis, trading area analysis, market segment analysis, and analysis of potential location

third section of a business plan; includes details concerning proposed organization, proposed product, and proposed marketing plan

fourth section of a business plan; includes sources of capital and projected income and expenses

fifth and last section of a business plan; includes business communication documents, marketing documents, and legal and miscellaneous documents

A systematic grouping of individuals which have been brought together to accomplish a common goal.

Define the various roles of members; set limits on employee work behavior; create rules and regulations; vary widely from organization to organization; adapt to the enviroment in which an organization is located.

Make up the base level of the pyramid; produce an organization's goods and services; generally do not manage or oversee the work of other employees.

Part of an organization's management team; oversee the work of operative employees; are the only managers who do not manage other managers; considered first-level managers.

Employees who manage other managers; responsible for establishing and achieving the goals of their specific department or region set by top management.

Sets an organization's goals and objectives; develops methods for achieving goals and objectives; is the head of the organization

Refers to accomplishing goals and objectives effectively and efficiently; involves using your resources competently; always has an end goal of achievement; accomplished through a specific organizational structure.

Arrange and group jobs based on specific tasks in order to enhance efficiency; increase the effectiveness of communication and reporting.

Are laid-back and undefined; involve employees completing tasks which may not alwyas fit their job description; normally found in smaller businesses with fewer employees.

Clearly defined and organized; can be found in any size business.

Occurs when a job is broken down into a number of steps which are each completed by a different individual.

The number of employees a supervisor can direct; varies from supervisor to supervisor.

The prnciple in which an employee should have only one supervisor to whom he or she is responsible; decreases conflicting demands and priorities.

Refers to the rights of a supervisory position to give orders; one person's position over another.

The most straightforward form of authority; gives the supervisor the right to direct the work of his or her employees without consulting other.

Supports line authority; allows others to advise, service and assist the supervisor if needed; allows for input and suggestions from additional staff members, but does not guarantee implementation.

Signifies the rights over individuals outside of an individual's specific division; breaks the chain of command.

Occurs when only a select few people at the top of an organization make the decisions.

Occurs when decisions are made by the indiciduals who are the closest to the problem; more conductive to making changes in a process.

The grouping of individuals into departments based on work functions, product or service, target market, geographic territory and process used to create products.

Groups activities with similar functions by units or departments; can be used in all types of organizations; reflects the purpose of the company.

Divides the organization by the products or services it produces and then subdvides each department by its function; works well for companies with multiple product lines.

Groups activities around common customer categories; uses the assumpion that customers in each department have a common set of problems and needs can be met by having specialists for each.

Divides activities into segments based on location; mainly used when an organization's customers are spread over a large geographic area.

Groups activities based on work or customer flow; provides a basis for the homogeneous categorizing of activities.

Non-elaborate structure; has little formalizaion; has a centralized authority.

Expansion of functional departmentalization; groups employees with similar and related occupational specialties; used as a framework for an entire company.

Composed of self-contained units or divisions; builds on product departmentalization; creates divisions which are self-sufficient within given limits; constructs divisions which are run by division managers or supervisors.

Combines the elements of functional and product-based departmentalization creating a dual chain of command; employees have at least two bosses; authority is shared between two supervisors; involves regular communication.

Consists entirely of work groups and teams which perfom an organization's work; allows team members to have authority to make the decisions which will affect them; has no chain-of-command.

Not defined of limited by boundaries or categories imposed by a traditional structure; blurs boundaries surrounding an organization by increasing its interdependence with its enviroment.

Have developed a capacity to continuously adapt and change because members take an active role in identifying and resolving work-place issues; employees must collaborate on work activities throughout the organization and have a team oriented work ethic.

A written map for beginning and growing a business; includes a mission, business goals, and objectives

A clear broad statement describing the purpose of the organization

General statement of what needs to be achieved and accomplished to achieve the mission

Specific, time sensitive accomplishemnt used to to measure the progress toward achieving goals and the mission statement

Describes the current condition of the industry and forecasts where the industry is moving in the next three to five years

Desribes who you are providing services for

Soliciting individuals to consume your product and provide proactive feedback

A questionnaire asking various questions about people's interest in your product

A clear, managerial structure for each function of the business

An organizational structure in which business functions are subordinate to the other

Allows funtions to works together; they arenot subordinate to each other