Intro to Business Management. Midterm study guide-Chapter 4

franchise
A business arrangement in which a small business obtains the rights to sell the goods or services of the supplier (franchisor)
outsource
Subcontracting work to outside companies (often in other countries)
unsecured loans
Loans requiring no collateral but a good credit rating
stock
Shares of ownership in a corporation
initial public offering (IPO)
A corporation’s first offering of stock to the public
small business
A company that is independently owned and operated, is not dominant in its field, and meets certain criteria for the number of employees and annual sales revenue
business plan
A written document that provides an orderly statement of a company’s goals and how it intends to achieve those goals
Incubators
Facilities that house small businesses during their early growth phase
start-up companies
New ventures that start from scratch
secured loans
Loans backed up with something of value that the lender can claim in case of default, such as a piece of property
franchisor
A supplier that grants a franchise to an individual or group (franchisee) in exchange for payments
franchisee
A small business owner who contracts for the right to sell goods or services of the supplier (franchisor) in exchange for some payment
venture capitalists
Investment specialists who provide money to finance new businesses or turnarounds in exchange for a portion of the ownership, with the objective of making a considerable profit on the investment; also called VCs