Business Terms and Definitions
Macroeconomics - looking at the whole economic picture
Microeconomics - looking at one particular part of the economy, such as an individual business.
Fiscal Policy - Use of government revenue collection and spending to influence the business cycle.
Monetary poilcy - Governmen policy and actions taken by the Federal reserve board to regulate the nations money supply (Interest rates, Alan greenspan)
Shareholder - person who buys stock in another company
Alien Company - a company that is incorporated in one country but operates in another.
Foriegn Company - A corporations that is incorporated in one state but operates in another.
Type of competition where no one firm or groups of firms is large enough to influence the economy - pure competition
Golden Parachute - benefits for executives if their job is ever taken away
Shark Repellant - Heavy stock holders must vote before a hostile take over attempt.
White Knight - A person who buys stock to prevent a take over attempt.
Poison Pill - something that makes the company look less attractive to avoid a hostile takeover.
Franchising - A marketing system revolving around a two party legal agreement, whereby the franchise conducts business according to terms specified by the franchisor.
Franchisee - an entrepreneur whose power is limited by a contractual relationship with a franchising organization.
Franchisor - The party in a franchise contract who specifies the mothods to be followed and the terms to be met by the other party.
Franchise Contract - The legal agreement between the franchisor and the franchisee
Franchise - The privilages in a franchise contract. The ability to use another companies product to sell through the franchise.
Product and trade name franchising - a franchise relationship granting the right to use a widely recognized product or name.
Business format franchising - an agreement whereby the franchisee obtains an entire marketing system and ongoing guidance from the franchisor requirements.
Master Licensee - a firm or individual acting as a sales agent with the responsibility for finding new franchisees within a specified territory.
Multiple Unit Ownership - a situation in which a franchisee ownd more than one franchise from the same company.
Area Developers - individuals or firms that abotain the right to open several franchised outlets in a given area
Piggyback Franchising - the operation of a retail franchise within the physical facilities of a host store.
Uniform Franchise Offering Circular (UFOC) - a document accepted by the Federal Trade Commision as satisfying its franchise disclosure requirements.
Plusses and Minues of Franchising
Pluses
- formalized training
- financial assistance
- proven marketing methods
- managerial assistance
- quicker startup time
- overall lower failure rates
Minuses
- franchise fees
- royalties
- restrictions on growth
- less independence in the operation
- franchisor may be sole supplier of some supplies
- termination / renewal clauses
Microeconomics - looking at one particular part of the economy, such as an individual business.
Fiscal Policy - Use of government revenue collection and spending to influence the business cycle.
Monetary poilcy - Governmen policy and actions taken by the Federal reserve board to regulate the nations money supply (Interest rates, Alan greenspan)
Shareholder - person who buys stock in another company
Alien Company - a company that is incorporated in one country but operates in another.
Foriegn Company - A corporations that is incorporated in one state but operates in another.
Type of competition where no one firm or groups of firms is large enough to influence the economy - pure competition
Golden Parachute - benefits for executives if their job is ever taken away
Shark Repellant - Heavy stock holders must vote before a hostile take over attempt.
White Knight - A person who buys stock to prevent a take over attempt.
Poison Pill - something that makes the company look less attractive to avoid a hostile takeover.
Franchising - A marketing system revolving around a two party legal agreement, whereby the franchise conducts business according to terms specified by the franchisor.
Franchisee - an entrepreneur whose power is limited by a contractual relationship with a franchising organization.
Franchisor - The party in a franchise contract who specifies the mothods to be followed and the terms to be met by the other party.
Franchise Contract - The legal agreement between the franchisor and the franchisee
Franchise - The privilages in a franchise contract. The ability to use another companies product to sell through the franchise.
Product and trade name franchising - a franchise relationship granting the right to use a widely recognized product or name.
Business format franchising - an agreement whereby the franchisee obtains an entire marketing system and ongoing guidance from the franchisor requirements.
Master Licensee - a firm or individual acting as a sales agent with the responsibility for finding new franchisees within a specified territory.
Multiple Unit Ownership - a situation in which a franchisee ownd more than one franchise from the same company.
Area Developers - individuals or firms that abotain the right to open several franchised outlets in a given area
Piggyback Franchising - the operation of a retail franchise within the physical facilities of a host store.
Uniform Franchise Offering Circular (UFOC) - a document accepted by the Federal Trade Commision as satisfying its franchise disclosure requirements.
Plusses and Minues of Franchising
Pluses
- formalized training
- financial assistance
- proven marketing methods
- managerial assistance
- quicker startup time
- overall lower failure rates
Minuses
- franchise fees
- royalties
- restrictions on growth
- less independence in the operation
- franchisor may be sole supplier of some supplies
- termination / renewal clauses
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