business ownership

Question 1

Entrepreneurs

Answer 1

interested in taking on new business opportunities, formulates and grows business with innovative ideas

Question 2

Small Business Owners:

Answer 2

Not always interested in taking on new business opportunities, key objective is to generate profits and usually sticks to their current business plan

Question 3

Franchise

Answer 3

the owners licenses their operation, products, services, branding, and knowledge for a franchise fee, requires a previously agreed upon amount in sales revenue to be paid to the owner, higher upfront cost but less risky

Question 4

S Corporation

Answer 4

provided with a special tax advantage that allows the company to pass its income, losses, deductions, and credits through its shareholders, doing this results in low taxation

Question 5

Disadvantage

Answer 5

very strict qualification requirements must be met to become and S corporation, no more than 100 shareholders, only one class of stock, strict stipulations on who is allowed to be a shareholder

Question 6

C Corporation

Answer 6

taxes the corporation separate from its owners, the company’s profits are taxed when earned, the shareholders dividends are taxed after they are distributed (ideal for international businesses bc they do not have to file a US income tax return) (limited liability)

Question 7

Limited liability company (LLC)

Answer 7

offers the same limited liability as a corporation but costs less to create, similar to S corporation and allow the owners to pay taxes on their profits or losses through their own taxes using a personal tax rate

Question 8

Sole proprietorship:

Answer 8

easy to create due to lack of government regulation, there is no line between business and the owner, the owner is responsible for all of the business’s debts, whereas a partnership share the responsibility for financial banking between the partners

Question 9

Non-profit entity

Answer 9

no owner, given tax exempt status that does not require the entity to pay any federal taxes

Question 10

Owner of a Large Company

Answer 10

Works with the CEPO, CFO, and COO to make strategic decisions

Question 11

Owner of a Small Business

Answer 11

Shoulders some or all of the CEO, CFO, and COO responsibilities

Question 12

Stakeholders

Answer 12

individuals or groups that have an interest in the success of a company ex: investors, customers, suppliers, employees, directing management, financing, budgeting

Question 13

Partnership

Answer 13

one or more partners share the business financial responsibilities

Question 14

Stockholders

Answer 14

ensure standards for management, must own one share of company stock

Question 15

Employment contract

Answer 15

outlines the employees and the employer’s obligations and the terms of employment: compensation, duration of employment, benefits, responsibilities

Question 16

Piece work

Answer 16

an employee is compensated for each piece of work they complete

Question 17

Equity

Answer 17

a non-cash compensation commonly offered to employees in place of cash or in addition to a lower salary: may include an investment vehicle like ownership in a company, restricted stocks, or shares

Question 18

Existence Stage 1

Answer 18

a business is up and running

Question 19

Survival stage 2

Answer 19

• a business regularly takes on a new customers and starts to generate a consistent income (owners can cover loans and start paying themselves)

Question 20

Success stage 3

Answer 20

a business is economically healthy: entrepreneurs look for avenues to leverage their company’s growth and pass operational duties on to others

Question 20

Take-off Stage 4

Answer 20

owners decide if they want a big business and determine the best solution to finance rapid growth

Question 21

Resources Maturity stage 5

Answer 21

owners separate financially and operationally from a business

Question 21

Pivot or Persist 6

Answer 21

a business with its current strategy pivots to a new strategy if needed

Question 22

Exit plan stage

Answer 22

owners make a profit from selling their ownership in a successful company

Question 23

Design thinking

Answer 23

a learning process focused on customers and their needs, used to develop user-friendly products

Question 24

Design thinking elements

Answer 24

empathize, define, ideate, prototype, test

Question 25

Empathize stage

Answer 25

observe, engage, and empathize with customers to understand their experiences and needs, involves learning about customer challenges

Question 26

Define stage

Answer 26

analyze observations and information gathered during the empathize stage, define the core problem as as problem statement

Question 27

Ideate stage

Answer 27

the design team develops solution ideas to spark new ways of thinking, they keep the most realistic and innovative ideas that will provide the best customer satisfaction

Question 28

Minimum Viable Product (MVPs)

Answer 28

basic functioning products that address the users core problem, used to test the problem solutions developed in the ideation

Question 29

Self Reliance

Answer 29

an entrepreneur cannot rely on others ,you are responsible for the success of your business

Question 30

Forward thinking mentality

Answer 30

thinking about and planning for the future

Question 31

Opportunity recognition

Answer 31

the way you approach new ideas and ventures

Question 32

Grit

Answer 32

tackling goals with courage and perseverance even when its challenging

Question 33

Personal agency

Answer 33

the ability to work toward achieving a goal without someone directing and ensuring that it is getting done

Question 34

Ethical practices

Answer 34

decision making based on moral and doing the right thing

Question 35

Social responsibilities

Answer 35

preventing and removing any corruption and unethical behavior that could harm your business, the community, or the environment

Question 36

Business idea

Answer 36

researched, refined, revised, shaped, reshaped tested

Question 37

Business opportunity

Answer 37

an investment that lets the buyer start a business, the initial buyer fee is at least $500, the seller is required to help the buyer find an ideal location for the business

Question 38

Franchise

Answer 38

buyers agree to buy and sell the products developed by the seller or owner of the license ---Strict stipulations on where a franchise location can be opened --- Higher start-up costs ---Offer ongoing support and training

Question 39

Network marketing

Answer 39

network marketers recruit other marketers who work under them to create a distributed network

Question 40

Licensing

Answer 40

anytime you want to use a brand name on your products, you must obtain a license

Question 41

Business opportunity viability

Answer 41

market size, relationships, managing cash flow, management skills, passion

Question 42

Lean canvas

Answer 42

a short written document discussing your business plan, one page long, discuss key information (BMC: Problems, solutions, costs, value propositions, marketing channels, revenue, key metrics)

Question 43

Executive summary

Answer 43

establishes the first impression of a business, summarizes intended accomplishments, products and services sold, financial outlook, funding needed, the business goals, the business achievements

Question 44

Marketing plan

Answer 44

identify competitors along with their strengths and weaknesses, describe potential customers and a plan to reach them

Question 45

Copyrights

Answer 45

used to protect creative works - art, literature, music

Question 46

Patent

Answer 46

used to protect an invention from being copied - grants exclusive rights to an inventor for a limited time - allows an inverter to profit from their invention without competing for sales

Question 47

Trademark

Answer 47

used to protect brand names, logos, and business names