| A | B |
|---|
| Producer, processors, manufacturers, intermediaries, service firms and non-profit organizations | types of businesses |
| Assistance from parent company, parent company shares experience and proven techniques, name recognition | Advantages of purchasing a franchise |
| Following laws and proper procedures a crucial in this area of a business | human resources |
| Challenges, enjoying work, having a sense of accomplishment | example of intrinsic motivation |
| Main management functions | planning, organizing, directing and controlling |
| Forecasting demand, scheduling production of goods and services, managing inventory and controlling quality | ways production can be made effective and efficient |
| Develop products for distribution from raw goods | producers |
| Materials derived from natural resources | raw goods |
| Change raw goods into a more finished form; produce processed goods | processors |
| Change raw or processed goods into finished goods | manufacturers |
| The “middleman”; move finished goods from one business to another; buy, store and resell goods | intermediaries |
| Provides services to consumers and other businesses | service firms |
| Provide goods and services to businesses and individuals; operate on donations, volunteers and philanthropists rather than income/profit | non-profit organizations |
| A firm or business owned by one person | sole proprietorship |
| A firm or business with two or more owners | partnership |
| A firm or business operating as a separate, legal entity; can issue stock for shares in ownership; has a board of directors to make major decisions for the company | corporation |
| The right/license to sell a company’s product or service within a given area | franchise |
| A firm or business owned and operated by its members; it is not designed to make a profit but to help its members receive their best prices | cooperative |
| Buys for members | consumer’s cooperative |
| Sells for members | producer’s cooperative |
| Departmentalizing or grouping resources and responsibilities into manageable work units to achieve organizational objectives | organizational structure |
| Organizational structure that is grouped by products provided | product |
| Organizational structure that is grouped by territory or area served | geographic area |
| Shows the structure and basic organization of a company; emphasizes chain of command and communication flow | organizational chart |
| Limited amount of authority is delegated and decisions are made at the top of the organization | centralization |
| Significant amount of authority is delegated and lower levels are empowered to make decisions | decentralization |
