Starting A Business

Question 1

Founder of Baby Think It Over

Answer 1

Mary and Rick Jurmain

Question 2

Nature of Business

Answer 2

Innovation, Running a Business, Risk-taking

Question 3

What is Innovation?

Answer 3

offering a new product, applying a new technique or technology, opening a new market, or developing a new form of organization for the purpose of producing or enhancing a product

Question 4

What does running a business mean?

Answer 4

combining resources to produce goods or services.

Question 5

What does risk-taking mean?

Answer 5

the outcome of the entrepreneurial venture can’t be known and Entrepreneurs, therefore, are always working under a certain degree of uncertainty

Question 6

Why should you start your own business?

Answer 6

To be your own boss, to accommodate your desired lifestyle, to achieve financial independence, to enjoy creative freedom, and to use your skills and knowledge

Question 7

What is Crowd-funding?

Answer 7

A means of raising capital by using crowdfunding platforms to attract investors. Entrepreneurs might offer a token of appreciation or ownership stakes in exchange for a substantial enough investment.

Question 8

What are angel investors?

Answer 8

Affluent investors that provide capital for start-ups in exchange for an ownership position in the company. Its goal is to help aspiring businesses.

Question 9

What are venture capital firms?

Answer 9

Also invest in companies in exchange for an ownership position. However, they highly expect to make a return of money than angel investors.

Question 10

Difference of Entrepreneur to a Small Business Owner?

Answer 10

Entrepreneurs are innovators who start companies to create new and improved products and strive to grow and meet customer’s expectations, while small business owners do not intend to be innovative and to expand.

Question 11

What is a Small Business?

Answer 11

It is an independently owned and operated business, that exerts little influence in its industry and has fewer than 500 employees.

Question 12

Why are Small Businesses Important?

Answer 12

they create jobs, spark innovation and provide opportunities for many people, including women and minorities to achieve financial success and independence.

Question 13

Why do small businesses create jobs?

Answer 13

Small businesses have a higher chance to contract and to expand therefore frequent hiring and firing are evident.

Question 14

Why do small businesses innovate more?

Answer 14

Small businesses tend to have more patents for their employees and are more focused in a certain product or service. They offer an environment that appeals to individuals with the talent to invent new products or improve the way things are.

Question 15

Why do small businesses provide opportunities for women and minorities?

Answer 15

Small businesses are portals for everyone to enter the economic stream. Women and minorities are now able to achieve financial success and independence through running a small business.

Question 16

What is an Industry?

Answer 16

It is a group of companies that compete with one another in selling similar products.

Question 17

Why do some are afraid to do business (Money)?

Answer 17

Because without money, you could not go further.

Question 18

Why do some are afraid to do business (Security)?

Answer 18

Some are afraid to sacrifice their steady income in exchange for running a business that is not secured to generate income

Question 19

Why do some are afraid to do business (Competition)?

Answer 19

A lot of people don’t know how to distinguish business ideas from similar ideas.

Question 20

Why do some are afraid to do business (Lack of ideas)?

Answer 20

Some do not know what kind of business to get into.

Question 21

What are the two sectors of industry?

Answer 21

Goods-producing sector and service-producing sector

Question 22

What does the goods-producing sector mean?

Answer 22

it includes businesses that provide tangible goods like manufacturing, construction, mining, etc.

Question 23

What does the service-producing sector mean?

Answer 23

it includes businesses that provide services but don’t make tangible goods like wholesalers, retailers, finance, recreation, etc.

Question 24

What is a retailer?

Answer 24

A business that buys goods from other firms and sells them to consumers.

Question 25

What is a wholesaler?

Answer 25

A business that buys goods from other firms to sell them to retails or use them for itself.

Question 26

What are the advantages of small business ownership?

Answer 26

Independence, Lifestyle, Financial Rewards, Learning Opportunities, and Creative freedom and personal satisfaction

Question 27

Why independence is an advantage?

Answer 27

You are your own boss. You get to decide what to do to your business to achieve success.

Question 28

Why lifestyle is an advantage?

Answer 28

You are in charge of your business, therefore, you can manage where and when to work.

Question 29

Why financial rewards are advantages?

Answer 29

Although having great risk in running a business, you are able to get more income than being employed by others. You are able to benefit from how hard you work.

Question 30

Why learning opportunity is an advantage?

Answer 30

You are involved in all aspects of the business, creating opportunities for you to understand various business functions.

Question 31

Why creative freedom and personal satisfaction are advantages?

Answer 31

You’ll be able to work in a field you enjoy, to put your skills and knowledge to use, to implement your own ideas, to see your business grow, and to work directly with customers.

Question 32

What are the disadvantages of small business ownership?

Answer 32

Financial risk, Stress, Time-commitment, and undesirable duties

Question 33

Why financial risk is a disadvantage?

Answer 33

You might need to commit most of your savings or to get a loan and income is not guaranteed.

Question 34

Why stress is a disadvantage?

Answer 34

As a business owner, you encounter a bewildering array of problems like employees, bills, competition, equipment breakdowns.

Question 35

Why time-commitment is a disadvantage?

Answer 35

Running a business is extremely time-consuming. You are unable to take vacations and it is difficult to get away from your business because of the modern technology.

Question 36

Why undesirable duties are disadvantages?

Answer 36

You are responsible for everything in your business therefore you are tasked to do certain things unwillingly like firing employees.

Question 37

What is a business plan?

Answer 37

a document that identifies the goals of a business and how these goals are to be achieved.

Question 38

What is financing?

Answer 38

It is the resources needed to start your business

Question 39

What are the ownership options?

Answer 39

Starting from scratch, Buying an existing business, and getting a franchise

Question 40

What does Starting from scratch mean?

Answer 40

It means creating your own products or services, securing your own location, hiring your employees, and building your reputation.

Question 41

What does Buying an existing business mean?

Answer 41

It means buying a business that already has its own products or services, customers, location, active suppliers, and trained employees. However, you could not test the business before buying it.

Question 42

What does getting a franchise mean?

Answer 42

It means that a franchiser grants a franchisee the right to use their brand name and sell their products or services. It requires a high amount of investment due to accompanying fees and the franchisee is bound to the franchise agreement or the franchiser’s rule.

Question 43

Why do businesses fail?

Answer 43

Bad Business Idea, Cash Problems, Managerial Inexperience and incompetence, lack of customer focus, and Inability to handle growth.

Question 44

What is sole-proprietorship?

Answer 44

It is a business that is owned by one person with profits earned taxed as personal income. It has unlimited liabilities, the owner is personally liable for the debts of the business and can be dissolved once the owner dies.

Question 45

What is a partnership?

Answer 45

It is a business that is formed by 2 or more people called partners with an agreement to put up a business to share profit. It has unlimited liability, and can still run even though a partner dies. Its partners can share decision-making, profit, and liabilities.

Question 46

What are the two types of partnership?

Answer 46

General partnership and Limited Partnership

Question 47

What is a corporation?

Answer 47

It is a legal entity that is entirely separate from its owners, incorporators and shareholders. It can enter into binding contracts, can sue and be sued, and be taxed. It has limited liability, greater access to financial resources, specialized management, and continuity. Although, it has double taxation, agency problem, and incorporation expenses and regulations.

Question 48

What is a cooperative?

Answer 48

It is a business owned and controlled by those who use its services. Cooperative is a joint group of individuals and firms to market products, purchase supplise, and provide services for its members.

Question 49

What is a not-for-profit corporation?

Answer 49

It is an organization formed to serve some public purpose.