test 2 Flashcards
benefits of sole proprietorship
easy and inexpensive to create, taxed at personal level, 100% ownership of profits and losses
disadvantages of sole proprietorship
unlimited liability for all claims against business
difficult to raise capital
types of partnership
General: all partners have unlimited liability
Limited: general partners have unlimited liability and seek capital from limited partners who cannot partake in management
advantages of partnerships
all the ads of a sole proprietorship+sharing risk
earnings pass through to personal tax returns
disadvantages of partnerships
partners are personally liable for business debts and obligations
corporation
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
C corp
owners have limited liability, can create different classes of stock to meet needs of investors
disad: owners accountable to shareholders first
B corp
for profit entity with a social mission
recognized in 26 states and DC
non-profit
non-profit with tax exempt status attractive for corporate investors who can deduct donations as business expense
NFP can’t pay dividends
LLC
enjoys limited liability, pass through tax benefits and continuity of life, can become a c-corp to be publicly traded
ads of trade secrets
broader scope of knowledge and info protected potentially, no requirement for disclosure
functions of a trademark
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
copyrights
fixed, original expression: ideas cannot be protected
ideaexpression
not copyright-able?
facts and ideas
not misappropriation if…
independently developed
information found on product
reverse engineering
virtual enterprise
getting traction quickly:
network of independent companies, suppliers and customers
strategic alliances
team of businesses share resources and reduce costs; more like partnerships
alternatives to conventional facilities
incubators, shared space, mobile locations, temporary tenant agreements
organizational culture
personality of firm
creating culture easier than changing existing culture
zappos
delivering wow with service
no job listing
stay humble
human resource leasing
at startup phase consider leasing employees or using temporary services
founders stock
stock issued to first shareholders of company or assigned to managers at start of company as compensation package
alternatives to equity incentives
deferred composition plans
bonus plans
capital appreciation plans
profit sharing plans
marketing plan
living guide to how a company wants to build customer relations over its life to satisfy its mission
