Chapter 7 Flashcards
entrepreneur definition
is a person who takes a risk to create a new product or to develop a better way to operate a business.
3 examples of entrepreneurs
bill gates, mark zuckerburg, steve jobs
3 examples of characteristics of entrepreneurs
- start at an early age
- develop and sell ordinary items
- find new ways to sell
- spot new markets and develop new products for them
- work to perfect ideas they have had for a year
- work within existing businesses
what is a sole proprietorship?
a type of enterprise owned and run by one person
3 advantages and disadvantages of a sole proprietorship
advantages: easy to establish, no limit to people you can hire, complete control, personal liability
disadvantages: unlimited liability, limited funds, personally liable for the debt
what is a partnership?
an arrangement where parties agree to cooperate to advance their mutual interests.
3 advantages and disadvantages of partnership
advantages: more cash, cos savings, more business opportunities, better work/life balance, potential tax benefits
disadvantages: exposed to unlimited liability, transferability is difficult, unstable
what is a corporation?
a company or group of people authorized to act as a single entity and recognized as such in law
3 advantages and disadvantages of a corporation
advantages: personal liability protection, business security and continuity, easier to access capital
disadvantages: subject to double taxation, self-employment taxes, paid dividends cannot be deducted from taxable income
what are 2/5 strategies entrepreneurs use
- unexpected opportunities
- changing market conditions
- improving a product or process
- providing an alternative good or service
- identifying population trends
what is the birth of E-commerce?
the promotion and sale of goods and services over the internet
what is 1 advantage of small businesses
- ability to adapt to change
2. ability to satisfy special market
what is 1 challenge facing small businesses
- poor management
- inadequate financing
- inability to hire highly qualified workers
what serves particular educational, social, charitable, or religious services
non-profit organizations
what is one example of a non-profit organization?
red cross or YMCA
