Term
Entreprenuerships and small businesses are the...
a. majority
b. minority
of business firms? |
|
Definition
|
|
Term
|
Definition
| A business started by someone who notices a need for a product/service. Started by someone who acepts the risk of starting and running a business. |
|
|
Term
|
Definition
| Virtual Business/Dot-Com Company |
|
|
Term
|
Definition
Person who recognizes a business opputunity and organizes, manages and assumes the risks of a business enterprise, with theintent of increasing the market value of the business.
These people take charge, are self-directed, and risktakers. |
|
|
Term
| Advantages of an Entreprenuership |
|
Definition
* Satisfaction from taking a sucessful risk.
*Working at home
*Gaining Profit |
|
|
Term
| Disadvantages of fan Entreprenuership |
|
Definition
*total responsiblity
*long hours
*Financial Risks (#1 reason why businesses fail) |
|
|
Term
| Successful Entrepreneurs... |
|
Definition
Want to control destiny
desire to earn profit
are enthusiastic
have self-confidence
are determined
takes risks
have high energy
desire achievement
recognizes opportunities |
|
|
Term
|
Definition
| Small Business Administration |
|
|
Term
|
Definition
| An independently owned business that usually has the owner as manager. (Max 500 Employees) |
|
|
Term
| Small Businesses (things they achieve) |
|
Definition
employ more than 50% of the U.S workforce.
Generate more than 1/2 of nation's income
Principal source of new jobs
38% jobs in high technology |
|
|
Term
|
Definition
Be the boss
Offer services large businesses can't
Easy formation |
|
|
Term
|
Definition
Failure- 4/5 S.B's fail in the first 5 years.
Responsibility-Your responsible for your actions
Long hours
great financial responsibility
you may under/overprice
inexperience
Effect of Change- If you don't change for consumers, you'll fail
Bad Financial Planning=Bankruptcy |
|
|
Term
|
Definition
| Financing, Employee Relations, Production, Consumer Relations |
|
|
Term
|
Definition
| A written description of a new businesses venture that describes all aspects. |
|
|
Term
| Parts of Business Plan (7) |
|
Definition
| Summary, Company Description, Management/Operating Plan, Products and Services, Legal Plan, Financial Plan, Marketing Plan. |
|
|
Term
| Some questions consider before opening a business |
|
Definition
What will I produce?
Who are my main competitors?
Why is my product needed?
How much will it cost to produce?
Employee #?
Physical Facilities?
Legal work?
Starting cast amount? |
|
|
Term
|
Definition
| Business owned by one person. |
|
|
Term
| Advantages of a Sole Proprietorship |
|
Definition
Easy to start (lisence or permit)
Be your own boss
Low Taxes |
|
|
Term
| Disadvantages of a Sole Proprietorship |
|
Definition
| Pay everything by yourself, may need to use savings or lans lack of business skills, unlimited liability |
|
|
Term
|
Definition
| Amount of responsibility you have for your decisions/debt. |
|
|
Term
|
Definition
| Two or more people who share the risks and rewards. More owners can contribute, and they have a good incentive to work, since they all share rewards and risks. |
|
|
Term
| How many times are Partnership's taxed? |
|
Definition
|
|
Term
Partnership Agreement
(Need to start a ____________) |
|
Definition
| An agreement which outlines rights and responsibilities of each partner. |
|
|
Term
| Advantages of a Partnership |
|
Definition
need a license
pay taxes based on personal profit
easier to obtain capitol
partners can bring different skills. |
|
|
Term
| Disadvantages of a Partnership |
|
Definition
| Have to share rewards with partners, incompatible with partners, if someone leave syou need to end partnership and reorganize business, share all legal and financial liability (if one screws up, you all go down) |
|
|
Term
|
Definition
| Business owned by many people but treated by law as one person. |
|
|
Term
|
Definition
Can own property, pay taxes, make contracts, and by sued like one person.
Exists separate from owners
Need a board of directors who control the corporation. |
|
|
Term
|
Definition
To raise money, you can sell stock, or shares of ownership in your corporation.
Stockholders gets a share of profit and a vote in decisions. |
|
|
Term
Corporate Charter and Articles of Incorporation
(You need to start a ___________) |
|
Definition
| A legal document from the state your headquarters are in to start a corporation. |
|
|
Term
| Advantages of a Corporation |
|
Definition
Limited Liability (If company loses money, stockholders only lose what they invested)
If you go bankrupt, personal property/taxes won't be taken away. |
|
|
Term
| Disadvantages of a Corporation |
|
Definition
More taxes
Government and some states usually tax corporate profit.
Owners are taxed on income
Corporation needs to pay taxes
Closely regulated by government
More difficult to start/run |
|
|
Term
| Key Diffrences between Business Forms |
|
Definition
Formation
Liability
Recordkeepting
Size
Taxes |
|
|
Term
|
Definition
A contractual agreement to sell a company's products or service in a designated geographical area.
To run, you must invest and pay franchiser annual fee/share of profits. In return, franchiser provides a well-known company name and a business plan. |
|
|
Term
| Advantages of a Franchise |
|
Definition
Easy to start
Name of parent company is big for customers |
|
|
Term
| Disadvantages of a Franchise |
|
Definition
| Franchiser is very strict on how business is run. |
|
|
Term
|
Definition
A business that focuses more on providing a service than making a profit.
Don't pay taxes
Donors can deduct donations from their taxes. |
|
|
Term
|
Definition
| A business that gathers raw products from their natural state (nature) |
|
|
Term
|
Definition
Change raw materials into more finished products
May require further processing. |
|
|
Term
|
Definition
| Makes products out of processed materials that are ready for the market. |
|
|
Term
|
Definition
Business that moves goods from one business to another.
Buy, store, sell! |
|
|
Term
| Wholesaler (Distributors) |
|
Definition
Distributes goods
Buy in huge quantities, sell in small! |
|
|
Term
|
Definition
Type of Intermediates
Purchases goods from wholesaler and resells them to the consumer. |
|
|
Term
|
Definition
Provide services rather than goods
Services = Products of a skill or activity
Some meed needs (clinics, law firms)
Some provide conviences (taxi, auto shops) |
|
|
