Unit 4 - Entrepreneurship Flashcards
Sole Proprietorship
- 1 Owner
- Advantages = Own boss, easy to start and end, and profits to the owner.
- Disadvantages = Unlimited liabilities, difficulty financing, and owner many not be an expert.
Partnership
- 2 or more owners
- Advantages = More capital/financing and shared responsibilites.
- Disadvantages = Unlimited liabilities in partnerships and agreements.
Co-operative
- Owned by members, each member has one vote, and board of directors.
- Advantages = Less expensive process and easily set up.
- Disadvantages = Decision making process is difficult.
Co-operation
- Many shareholders, one vote per person, and board of directors.
- Advantages = Limited liability and ownership transfer is easy.
- Disadvantages = Franchise monthly fee.
Franchise
- Hybrid
- Advantages = Shared marketing and training support.
- Disadvantages = Monthly franchise fee.
Define Inventions
Inventions are products or processes that does something that has never been done before. (Plane, paper, and the wheel.)
Define innovations
Innovations uses new technology and materials to improve existing products or processes. (Coloured tv, cell phones, and different types of soaps.)
What are some ways to innovate?
How the product is used.
The packaging
The marketing strategy
The manufacturing and distribution process
The design.
What are patents?
Legal rights of ownership for their invention or innovation
What is copyright?
Exclusive rights to produce, sell, or use, art, music, etc.
What are licensing agreements?
Allows another business to use an invention or innovation for a fee or royalty.
What are franchising agreements?
A business licenses the rights to its name and process.
What are selling rights?
- Entrepreneurs can sell their patents and copyrights, this is a very easy way to gain revenue from inventions or innovations.
- Advantages = You would not have to wait for the money.
- Disadvantages = The long term profit may increase.
