test 2

Question 1

benefits of sole proprietorship

Answer 1

easy and inexpensive to create, taxed at personal level, 100% ownership of profits and losses

Question 2

disadvantages of sole proprietorship

Answer 2

unlimited liability for all claims against business

difficult to raise capital

Question 3

types of partnership

Answer 3

General: all partners have unlimited liability
Limited: general partners have unlimited liability and seek capital from limited partners who cannot partake in management

Question 4

advantages of partnerships

Answer 4

all the ads of a sole proprietorship+sharing risk

earnings pass through to personal tax returns

Question 5

disadvantages of partnerships

Answer 5

partners are personally liable for business debts and obligations

Question 6

corporation

Answer 6

legal entity itself, can sue or be sued, can own property and sell property
chartered or registered by the state
owners are shareholders who invest capital in exchange for shares of ownership, not liable for debts

Question 7

C corp

Answer 7

owners have limited liability, can create different classes of stock to meet needs of investors
disad: owners accountable to shareholders first

Question 8

B corp

Answer 8

for profit entity with a social mission

recognized in 26 states and DC

Question 9

non-profit

Answer 9

non-profit with tax exempt status attractive for corporate investors who can deduct donations as business expense
NFP can’t pay dividends

Question 10

LLC

Answer 10

enjoys limited liability, pass through tax benefits and continuity of life, can become a c-corp to be publicly traded

Question 11

ads of trade secrets

Answer 11

broader scope of knowledge and info protected potentially, no requirement for disclosure

Question 12

functions of a trademark

Answer 12

indicate the source or origin of goods or a service
assures consumers of the quality of goods bearing the mark
creates business goodwill and brand awareness

Question 13

copyrights

Answer 13

fixed, original expression: ideas cannot be protected

ideaexpression

Question 14

not copyright-able?

Answer 14

facts and ideas

Question 15

not misappropriation if…

Answer 15

independently developed
information found on product
reverse engineering

Question 16

virtual enterprise

Answer 16

getting traction quickly:

network of independent companies, suppliers and customers

Question 17

strategic alliances

Answer 17

team of businesses share resources and reduce costs; more like partnerships

Question 18

alternatives to conventional facilities

Answer 18

incubators, shared space, mobile locations, temporary tenant agreements

Question 19

organizational culture

Answer 19

personality of firm

creating culture easier than changing existing culture

Question 20

zappos

Answer 20

delivering wow with service
no job listing
stay humble

Question 21

human resource leasing

Answer 21

at startup phase consider leasing employees or using temporary services

Question 22

founders stock

Answer 22

stock issued to first shareholders of company or assigned to managers at start of company as compensation package

Question 23

alternatives to equity incentives

Answer 23

deferred composition plans
bonus plans
capital appreciation plans
profit sharing plans

Question 24

marketing plan

Answer 24

living guide to how a company wants to build customer relations over its life to satisfy its mission

Question 25

advertising

Answer 25

focuses on non-price benefits, and targets end-users
more a pull stategy
creates relationship w/ customer, loyalty

Question 26

promotion

Answer 26

more price or incentive focused strategy

push strategy

Question 27

when to give away?

Answer 27

consider in an environment when difficult to gain customers attention,
give away info or consulting, samples, when customers need to try the product

Question 28

most probably sources of funding for startups

Answer 28

friends
family
fools

Question 29

valley of death

Answer 29

stages between idea generation and product launch where risk is extremely high

Question 30

early adopter stag

Answer 30

tech oriented people buy it, company needs cash for marketing

Question 31

funding problem with social ventures

Answer 31

non-profits cannot offer equity

insurance firms and pension funds make cash deposits into community banks that lend to social ventures

Question 32

angel investors

Answer 32

generally give 25-100K and seek 20-30 times their initial investment over 5 yrs

Question 33

VC firm

Answer 33

generally wants stock and a seat on board of directors

Question 34

non-dilutive funding sources

Answer 34

need funding but dont want to dilute ownership entrepreneurs can chose debt if available