Small Business Types
The owner focuses on generating profits and deals with known risks.
What is a Small Business?
Easy to create but comes with unlimited liability.
What is a Sole proprietorship?
Creates the company.
Who is the Founder?
In this stage, income and customers begin to grow.
What is the Survival Stage?
During which stage of the design thinking process is a problem statement formed.
What is Define?
These individuals tend to grow fast and take on new opportunities and unknown risks.
What are Entrepreneurs?
Shared financial responsibility.
What is a Partnership?
Oversees company finances.
Who is the Chief Financial Officer or CFO?
During this phase the owner can separate financially and operationally from a business.
What is the Resource Maturity?
During which stage of the design thinking process will the design team create multiple inexpensive product versions.
What is a Prototype?
This business requires more money upfront but has less risk involved.
What is a franchise?
No ownership, no US federal taxes.
What is a Non-Profit?
Reports to the board of directors.
Who is the Chief Executive Officer or CEO?
An owner decides if they will continue to grow the business into a large company or pivot to a new project
What is Pivot or Persist?
Which stage of the design thinking process involves learning about customers' challenges.
What is Empathize?
When a customer makes a purchase from a business.
What is a business-to- consumer (B2C) transaction?
Ideal for a single owner seeking low risk.
What is a Limited Liability Corporation or LLC?
Oversees daily operational and administrative functions
Who is the Chief Operational Officer or COO?
An owner decides whether to continue growing the business or to sell the business.
What is the Take-Off Stage?
In which stage does the team create solutions to the problem?
What is Ideate?
Though it can be challenging to show value, these products are instantly available.
What are Digital Products?
Lower tax rate that prevents the company from being double-taxed.
What is a S Corporation?
Has a vested interest in the success of the company
Who is Stakeholder?
List the correct order of the business life cycle stages:
What are: Existence, Survival, Success, Take-Off Resource Maturity, Pivot or Persist and Exit Plan?
List the correct order of the design thinking process
What are: Empathize, Define, Ideate, Prototype and Test?