Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

10th grade > Business Ch 3 > Flashcards

Business Ch 3 Flashcards

1
Q

What is sole proprietorship

A

No legal distinction between the sole proprietor’s status as an individual and his or her status as a business owner

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Advantages for sole proprietorship

A

Easy and inexpensive to form
Profits all go to owner
Direct control of the business
Freedom from gov regulation
No special taxation
Ease of dissolution

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Disadvantages to sole proprietorship

A

Unlimited personal liability
Difficulty raising capital
Limited managerial expertise
Trouble finding qualified employees
Personal times commitment
Unstable business life
Losses are the owner’s responsibility

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

General partnership

A

An association of 2 or more persons who operate a business as co-owners by voluntary legal agreement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Advantages to general partnership

A

Easy and inexpensive to form
Shared financial commitment among partners
Complementary skills/utilize the expertise of each partner
Partnership incentives for employees

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Disadvantages to general partnership

A

Joint and individual liability
Disagreements among partners
Shared profits

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Corporations

A

A legal organization with assets and liabilities separate from those of its owners

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Advantages to corporations

A

Limited liability: shareholder’s personal assets are protected. Shareholders can generally only be held responsible for their investment in stock in the company
Ability to generate capital through sale of stock
Corporate tax treatment: Corporations file taxes separately from their owners
Attractive to potential employees

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Disadvantages to corporations

A

Time and money: costly and time consuming to start and operate
Double taxing: In some cases, corporations are twice first, when the company makes a profit, and again when dividends are paid to shareholders
Additional paperwork: There are increased paperwork and record-keeping burdens associated with this entity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Franchise

A

Business model that involves 1 business owner (franchisor) licensing trademarks and methods to an independent entrepreneur (franchisee) for a prescribed period of time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Disadvantages to franchisee

A

Cost: Buying and running a franchise can be very expensive
Unequal partnership: Franchisor sets the rules and franchisee must follow them
Rules and enforcement: Franchisor rules imposed by the franchising authority are becoming increasingly strict. Some franchisors are using minor rule violations to terminate contracts and seize the franchise without any reimbursement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Advantages to franchisee

A

Less risk
Name/brand recognition: The franchise has an established image and identity already, which can reduce or simplify marketing efforts
Access to expertise, ongoing support: Franchisee often receives help with site selection, training materials, product supply, and marketing plans
Relative autonomy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Advantages to franchisor

A

Access to capital for growth and expansion
Cash flow for operations: In addition to initial franchise fees that can range from 50k to 5 mil, franchisors receive payments in the form or royalties from each franchisee
Economies of scale: Once a franchise is established with multiple locations, company may be able to leverage its buying suppliers, advertisers, and vendors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Disadvantages to franchisor

A

Lack of control: Despite the language of the franchise agreement, once the franchisee has established their location, the franchisor may have difficulty ensuring that quality standards are met and the franchise is operating in a manner that benefits the brand
Trade secrets: If the success of a business is based on a trade secret, special process, or innovative technology, establishing a franchise may make the business vulnerable to knock-offs or imitation
Overexposure/brand dilution

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Limited liability company (LLC)

A

Secures the corporate advantage of limited liability while avoiding the double taxation characteristic of traditional corporation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

S Corporation

A

Corporations that do not pay corporate taxes on profits; instead, profits are distributed to shareholders who pay individual income taxes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Small business

A

Independent business with fewer than 500 employees not dominant in its market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Why small businesses fail

A

Management shortcomings: Overconfidence
Inadequate financing: Overestimate income, underestimate expenses
Government regulations: Regulatory requirements, high taxes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Small business contributions

A

Creating new jobs, creating new industries, innovation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Entrepreneurs

A

Risk taker in the private enterprise system, a person who seeks profitable opportunity and takes the necessary risks to set up and operate a business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

How are entrepreneurs different from small business owners

A

Major goal is expansion and growth
Combine their ideas and drive with money, employees, and other resources to create a business that fills a market need

20
Q

How are entrepreneurs different from managers

A

Main responsibility is to use the resources of their organization employees, money, equipment, and facilities to accomplish their goals
Willing to assume risk

21
Q

Characteristics of entrpreneurs

A

Vision
High energy level
Need to achieve
Self-confidence and optimism
Tolerance for failure
Creativity
Tolerance for ambiguity
Internal focus of control

22
Q

Business plan

A

Professional error-free statement
Similar to roadmap
Describes how you will structure, operate, fund, and grow business

23
Q

Industry overview

A

Discusses trends and growth opportunities within the industry
Analyzes what already exists within the industry

24
Q

Management team plan

A

Describes who will be on the management team and their qualification
If you don’t have all necessary qualifications this section describes where you get advice

25
Q

Company description

A

Describes basic concept of business, initial size of company, need for your products, and problem the product is solving

26
Q

Market analysis

A

Provides details about industry, size of market, and target market
Target market describes what type of consumer is most likely to purchase product

27
Q

Competitive analysis

A

Focuses on the competition
Describes how you will compete in the market

28
Q

Direct and indirect comp

A

Direct comp- Businesses that provide same product
Indirect comp- Businesses that offer a different product but meet the same need

29
Q

Marketing plan

A

Describes how you will make your product known to future customers
Marketing mix: Product, place, price, promotion

30
Q

Operational plan

A

Describes what the business needs in order to operate

31
Q

Organizational plan

A

Describes the organizational structure and team
Defines the management philosophy

32
Q

Financial plan

A

Describes key financial information: financial needs and overall financial health, estimates growth, identifies financial management

33
Q

Growth plan

A

Describes plans for company going forward and what is needed for the company to grow
Investors want to see that entrepreneurs have thought beyond the initial stages of opening the business

34
Q

Contingency plan

A

Examines potential risks and how these can be avoided or what can be done to prepare

35
Q

Executive summary

A

Summarizes key points from the business plan
May contain a hook or story to entice someone to read the plan

36
Q

…will tell you if there’s an opportunity to turn your idea into a successful business. It’s a way to gather information about potential customers and businesses already operating in your area. Use that information to find a competitive advantage for your business

A

Conduct market research

37
Q

Your ______ is the foundation of your business. It’s a roadmap for how to structure, run, and grow your new business. You’ll use it to convince people that working with you — or investing in your company — is a smart choice

A

Write your business plan

38
Q

Your business plan will help you figure out how much money you’ll need to start your business. If you don’t have that amount on hand, you’ll need to either raise or borrow the capital. Fortunately, there are more ways than ever to find the capital you need

A

Fund your business

39
Q

…will impact your business registration requirements, how much you pay in taxes, and your personal liability

A

Choose a business structure

39
Q

one of the most important decisions you’ll make. Whether you’re setting up a brick-and-mortar business or launching an online store, the choices you make could affect your taxes, legal requirements, and revenue

A

Pick your business location

40
Q

You’ll want one that reflects your brand and captures your spirit. You’ll also want to make sure your ___________ isn’t already being used by someone else

A

Choose a business name

41
Q

Once you’ve picked the perfect business name, it’s time to make it legal and protect your brand. If you’re doing business under a name different than your own, you’ll need to register with the federal government, and maybe your state government, too

A

Register your business

42
Q

You’ll use your employer identification number (EIN) for important steps to start and grow your business, like opening a bank account and paying taxes. It’s like a social security number for your business

A

Get federal and state tax IDs

43
Q

Keep your business running smoothly by staying legally compliant. These you need for your business will vary by industry, state, location, and other factors

A

Apply for licenses and permits

44
Q

A small business checking account can help you handle legal, tax, and day-to-day issues. The good news is it’s easy to set one up if you have the right registrations and paperwork ready

A

Open a business bank account

45
Q

Reasons to choose entrepreneurship

A

Being Your Own Boss
Financial Success
Job Security
Quality of Life

46
Q

Who are the entrepreneurs we talked about in class and what are the businesses they started?

A

Ray Krok- McDonalds
Bailey Wilson- Bondi Bowls
Sam Walton- Walmart
Jessica Alba- Honest

47
Q

Mission vs vision statement

A

Mission- Goals
Vision- Values

10th grade (71 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions