Chapter 2: Small Business Management, Entrepreneurship and Ownership

corporation
A business structure that creates an entity separate from its owners and managers
entrepreneurship
The process of identifying opportunities for which marketable needs exist and assuming the risk of creating an organization to satisfy them
entrepreneurship process
The stage of a business’s life that involves innovation, a triggering event, and implementation of the business.
implementation
The part of the entrepreneurial process that occurs when the organization is formed
limited-liability company (LLC)
A relatively new type of corporation that taxes the owners as partners yet provides a more flexible structure than an S corporation
locus of control
A person’s belief concerning the degree to which internal or external forces control his or her future
need to achieve
The personal quality, linked to entrepreneur-ship, of being motivated to excel and choose situations in which success is likely
nonprofit corporation
A tax-exempt corporation that exists for a purpose other than making a profit
partnership
An association of two or more persons to carry on as co-owners of a business for profit.
public corporations
A corporation that sells shares of stock to the public and is listed on a stock exchange
small business management process
The stage of a business’s life that involves growth, maturity, and harvest.
sole proprietorship
A business owned and operated by one person
triggering event
A specific event or occurrence that sparks the entrepreneur to proceed from thinking to doing
unlimited liability
The potential for an owner to lose more than has been invested in a business