Module 9 Flashcards
is defined as a privately owned corporation, partnership, or sole proprietorship that has fewer employees and less annual revenue than a corporation or regular-sized business.
small business
Small business have their own distinctive characteristics. They are the following:
- independent management
- small capital requirement
- mostly local operation
The owner is also the manager
independent management
Small business requires only the small capital and this can be supplied by a single or few individuals
small capital requirement
Small business usually operates in a certain locality although there are cases when the market is not confirmed to a local area.
mostly local operation
Advantage of Operating a Small Business
1) Be an employee
2) Be a professional
3) Be a small business operator (SBO)
Types of Small Business
sole proprietorship
partnership
corporation
cooperative
is easy to form and gives you complete control of your business. You’re automatically considered to be a sole proprietorship if you do business activities but don’t register as any other kind of businessq
sole proprietorship
are the simplest structure for two or more people to own a business together. There are two common kinds of partnerships: limited partnerships (LP) and limited liability partnerships (LLP).
partnership
exists when two or more partners go into business together, but one or more of the partners are only liable up to the amount of their investment.
limited partnership
allow for a partnership structure where each partner’s liabilities is limited to the amount they put into the business.
limited liability partnership
lets you take advantage of the benefits of both the corporation and partnership business structures.
liability company
is a legal entity that’s separate from its owners. Corporations can make a profit, be taxed, and can be held legally liable.
c corporation
is a special type of corporation that’s designed to avoid the double taxation drawback of regular C corps. S corps allow profits, and some losses, to be passed through directly to owners’ personal income without ever being subject to corporate tax rates.
s corporation
is a for-profit corporation recognized by a majority of U.S. states. B corps are different from C corps in purpose, accountability, and transparency, but aren’t different in how they’re taxed.
b corporation
resemble B corps but have a less traditional corporate structure. These shed many formalities that typically govern corporations and apply to smaller companies.
close corporation
are organized to do charity, education, religious, literary, or scientific work. Because their work benefits the public, nonprofits can receive tax-exempt status, meaning they don’t pay state or federal taxes income taxes on any profits it makes.
non-profit corporation
is a business or organization owned by and operated for the benefit of those using its services. Profits and earnings generated by the cooperative are distributed among the members, also known as user-owners
cooperative
Five qualities of successful small business owners
- proactive communication
- Impeccable organization
- Constant learning
- Strategic planning
- Language skills
Is assertive, honest, and focused on objectives. It keeps the project manager in front of the curve, enabling teamwork, effective decisions, and accountability throughout the project.
proactive communication
A desire to learn can help you continually evolve. Reading books and other publications, growing your business network, and seeking mentors can all provide learning opportunities that you can take back to your business. In addition, looking at other companies’ successes and failures can help you learn valuable business lessons.
constant learning
The bigger the project, the more important it is to be organized.
impeccable organization
is an organizational management activity that is used to set priorities, focus energy and resources, strengthen operations, ensure that employees and other stakeholders are working toward common goals, establish agreement around intended outcomes/results, and assess and adjust the organization’s direction in response to a changing environment.
strategic planning
With the majority of client communications occurring via email and text, and the growing need for a strong online presence, grammar matters more than ever. Print out important documents and read them aloud. That can reveal grammar mistakes along with other crucial writing issues involving tone, word choice, and structure.
language skills
