AP®︎ Business with Personal Finance: Topic 1.7 Flashcards
Master key terms and definitions for Topic 1.7 of AP Business with Personal Finance – Organization, Roles, and Responsibilities to help you prep for quizzes and the AP exam.
Sole Proprietorship
A business owned by one individual who controls decisions and profits, is personally liable for business debts, and typically has less access to funding than a corporation
A business owned by one individual who controls decisions and profits, is personally liable for business debts, and typically has less access to funding than a corporation
A business owned by two or more partners who retain substantial control over decisions and profits, are personally liable for business debts, and typically have less access to funding than a corporation
A business whose owners retain substantial control over decisions and profits while the company, not the owners, is liable for business debts; it typically has less funding access than a corporation
A business owned by shareholders who elect a board of directors; the company controls profits and is liable for debts, while greater funding and growth capacity come with reduced direct owner control
The owners of a corporation, who elect its board of directors and hold its executive leaders accountable
The body elected by shareholders to oversee a corporation and its executive leadership
Leaders responsible for the entire business’s vision, operations, strategy, and performance; in a corporation, they report to the board and shareholders
An executive leader responsible for the performance and direction of the entire business rather than only one specialized function
A manager who directs a specialized functional area and reports to the business’s executive leaders
A diagram showing formal authority and reporting relationships among the board, executives, managers, departments, and employees
Groups that organize related business functions and develop expertise, improving efficiency, effectiveness, and the business’s ability to meet customer needs
The department that conducts market research, develops sales strategies, manages brands, and builds customer relationships to attract and retain customers
The department that innovates around new and existing goods, services, and processes to better meet customer needs and wants
The department that manages the technical process of manufacturing goods or developing services so products reach customers
The department that tracks expenditures and earnings and prepares financial statements to monitor the business’s financial health
The department that secures and manages funds and uses financial data to recommend strategies for improving business performance
The department that recruits, trains, and oversees the evaluation of employees so the business has a capable workforce
Contracting another business to perform a function, usually to increase efficiency, reduce costs, or obtain skills unavailable internally
The owner of a sole proprietorship, with primary responsibility for all aspects of the business and often multiple roles such as CEO, marketer, product developer, financial manager, and operations manager
The owners of a partnership, who have primary responsibility for all aspects of the business and typically divide roles according to their strengths and interests
