| A | B |
|---|
| Management Plan | Divides a company into different departments run by different managers. |
| Organizational Chart | Show how the business is structured and who is in charge of whom. |
| Line Authority | Managers at the top are in charge of those beneath them and so on. |
| Centralized Organization | Puts authority in one place, with top management. |
| Departmentalization | Divides responsibility among specific units, or departments. |
| sole proprietorship | A business or firm owned by one person |
| unlimited liability | Responsibility for debts beyond the business’s assets |
| limited life | The business legally ends when the owner leaves or dies |
| partnership | A business organization with two or more owners who share the responsibility and the rewards |
| corporation | An organization owned by many people but treated by the law as though it were a person (separate entity) |
| articles of incorporation | a written legal document that defines ownership and operating procedures and conditions for the business |
| joint venture | a unique business organized by 2 or more other businesses to operate for a limited time for a specific project (partnership) |
| S Corporation | offers the limited liability of a corporation |
| Limited Liabiltiy Corporation | provides features of partnership and corporation Simpler to start Provides liability protection to owners |
| non-profit organization | a group of people who join to do some activity that benefits the public |
| cooperative | owned by its members, served their needs and is managed in their interest |
| franchise | a written contract granting permission to operate a business to sell products and services in a set way |
| contingent worker | on who has no explicit or implicit contract for long-term employment |
| producers | create products and services used by individuals or other businesses |
| intermediary | businesses involved in selling the goods and services of producers to consumers and other businesses |
| service business | carries out activities that are consumed by its customers (fastest growing part of the economy) |
| mission statement | a short specific written statement for the reason of a business exists and what it wants to achieve |
| goal | a precise statement of results the business expects to achieve (SMART) |
| policies | are guidelines used in making consistent decisions |
| procedures | descriptions of the way work is to be done |
| responsibility | the obligation to complete specific work |
| authority | the right to make decisions about how responsibilities should be accomplished |
| matrix organizational structure | designed around projects, projects or customers |
| functional organization | organized by function such as production, operations, marketing, region |
