1. Short-term financing is money that will be used for one year or less and long-term
financing is money that will be used for longer than one year. Short-term may be used
when business practices affect a firms cash flow and also on inventory.
1. A sole proprietorship is a business that is owned/operated by one person, while a
partnership is a voluntary association of two or more persons to act as co-owners of a
business for profit.
2. Sole proprietorship gives you ease of start-up an
1. The 5 steps necessary for organizing a business is job design, departmentalization,
delegation, span of management, and chain of commands. Job design (specialization) is
the separation of all organizational activities into distinct tasks and
1. A private accountant is employed by a specific organization and a public accountant
works on a fee basis for clients and may be self-employed or be the employee of an
2. The accounting equation is assets= liabilities + owner
1. Firms engage in international trade when it buys some portion of its input from, sells
some portion of its output to, an organization located in a foreign country.
2. An absolute advantage in international trade is the ability to produce a sp
1. When you study business, college graduates learn more than just high school graduates
even though it costs more because youll eventually pay off the debt and still be making
more money. Also, you learn communication, conceptual, interpersonal