DOMAIN 1 LESSON 1 Flashcards
Interested in taking on new business opportunities
Entreprenuership and small business
Entrepreneurs
Not always interested in taking on new business opportunities
Entreprenuership and small business
Small Business Owners
Content to stick with what their current business does
Entreprenuership and small business
Small Busines Owners
Willing to explore new opportinities and unknown risk
Entreprenuership and small business
Entrepreneurs
The owners license their operations products or services, branding, and knowledge for a franchise fee
Entreprenuership and small businessClassify types of Businesses
Franchise
Higher upfront costs but are less risky as you are also purchashing tested and true operational processes, products and services, and well recognized branding
Entreprenuership and small business
Franchise
Tangible Items
Classify types of Businesses
Products
Intangible things like a skill or expertise that is performed
Classify types of Businesses
Services
Usually perceived to be of higer value
Classify types of Businesses
Tangible Items
Drawbacks of physical product
Classify types of Businesses
- Need to be stored and tracked
- Shipping and packaging
- No need for physical storage locations, inventory, additional employees, ir shipping cost
- Instant delivery at little or no cost
Classify types of Businesses
Digital Goods
Drawbacks of digital product
Classify types of Businesses
More difficult to demonstrate the value of the product or service
Classify types of Businesses a customer purchased an item from a business which is known as a
Business Legal Structures
Business-to-Consumer or B2C transaction
When a business purchases a product, service, or information from another business is called
Business Legal Structures
Business-to-Business or
B2B Transaction
Provided with a special tax advantage that allows the company to pass it’s income, losses, deductions, and credit through its shareholders
Business Legal Structures
S corporation
Limited liability protection shields the owners’ personal assets from
Business Legal Structures
Business creditors
Disadvantage of S Corporation is strict qualification requirements like
Business Legal Structures
- No more than 100 shareholders
- only one class of stock
- Strict stipulation on who is allowed to be a shareholder
Taxes the corporation seperate from it’s owners = The company’s profit are taxed when earned = The shareholders’ dividends are taxed after they are distributed.
Business Legal Structures
C corporation
Double taxation but ideal for international business
Business Legal Structures
C corporation
Offers the same limited liability as a corporation but costs less to create
Business Legal Structures
Limited liability company
(LLC)
It allows the owners to pay taxes on their profits or losses through their own taxes using a personal tax rate
Business Legal Structures
Limited liability company (LCC)
This structure is ideal for a single owner desiting low risk because owners are not personnally liable for the company’s debts
Business Legal Structures
Limited liability company (LCC)
- Easy to create due to the lack of goverment regulation
- There is no line between the business and the owner
- The owner is responsible for all
- They have unlitimied personal liability
Business Legal Structures
Sole proprietorship
- No one owns a non-profit entity
- It is given tax-exempt status that does not require the entuty to pay any any US federal taxes
Business Legal Structures
Non- profit entity
- Highest-ranked employee in the company
- Responsible for the business’s Success
- Makes te major decisions for the company
- Overseas operations and resources
- Develops the company’s vision,strategies, and mission
- Reports to the board of directors
Business Roles and responsibilities
Chief Executive Officer (CEO)
- Incharge of the company’s finances
- Manages and plans the cashflow
- Creates budgets
- Forecasts wheter the company will meet set budget requirement or nor
- Negotiates on all of the company’s financial matters
Business Roles and responsibilities
Chief Financial Officer
(CFO)
- Overseas the business’s day-to-day operational and administrive functions
Business Roles and responsibilities
Chief Operating Officer
(COO)
- Works with the CEO, CFO and COO to make strategic decisions (usually not active)
Business Roles and responsibilities
Owner of a large company
Shoulders some or all of the CEO, CFO and COO responsibilities
Business Roles and responsibilities
Owner of a Small Business
Top executive that is responsible for management and deployment of information technology for a company
Business Roles and responsibilities
Chief Technology Officer
(CTO)
- The indicidual that developed or created the company or organization
- The only business that is not interchangeable
Business Roles and responsibilities
Founder
Individual that have an interest in the sucecss of a company = usually member of board of directors
Business Roles and responsibilities
Stakeholders
Example of stakeholders:
Business Roles and responsibilities
- Investors
- Customers
- Suppliers
- Employees
One or more partners share the business’s financial responsibilities
Business Roles and responsibilities
Partnership
- Ensure standards for management
- Must own one share of company stock
Business Roles and responsibilities
Stockholders
Outlines the employee’s and the employer’s obligations and the terms of employment
Business Compensation Structures
Employment Contract
Contents of employment contract
Business Compensation Structures
- Compensation
- Schedule
- Duration of employment
- Benefits
- Responsibilites
A payment for the hours the have worked
Business Compensation Structures
Hourly wage
A fixed payment amout for each pay period
Business Compensation Structures
Salary
A fee paid for completing a task
Business Compensation Structures
Commission
Employees are compensated for the number of units they produce
Business Compensation Structures
Piece Work
A non-cash compensation commonly offered to employees in place of cash or in addition to a lower salary
Business Compensation Structures
Equity
A business is up and running
Business Life Cycle
Existence Stage
- A Buiness regugarly takes a new customers and starts to generate a consistent income
- Owners can cover loans and start paying themselves a fair salary after turning a profit
Business Life Cycle
Survival Stage
- A business is economically healthy
Business Life Cycle
Sucess Stage
- Owners decide if they want a big business and determine the best solution to finance rapid growth
Business Life Cycle
Take-off stage
- Owners seperate financially and operationally grom a business
Business Life Cycle
Resource maturity Stage
- Business persist with its current strategy or pivots to a new strategy if needed
Business Life Cycle
Pivot or persist
Owners make a profit from selling their ownership in a successful company
Business Life Cycle
Exit plan stage
- A learning process focused on customers and their needs
- Used to develop user-friendly products
Business Life Cycle
Design Thinking
Design Thining Elements
The design thinking process
- Empathize
- Define
- Ideate
- Prototype
- Test
- Observe, engage and Empathize with customers to understand their experience and needs
The design thinking process
Emphatize Stge
- Analyze observation and information gathered during the empathize stage
The design thinking process
Define stage
- The design team develops solution ideas to spark new ways of thnking
- keep the most realistic and innovative ideasthaw will provide the best customer satisfaction.
The design thinking process
Ideate stage
- Basic functioning products that address the user’s core problem
- Used to test the problem solutions develeoped in the ideation stage
The design thinking process
Minimum Viable Products
(MVP’s)
- The design team reviews and refines the product
- Rigorously tests the best product solution found in the prototyping stage
The design thinking process
Final Testing Stage
