DEFINITIONS
Form of business with a single owner
Sole Proprietorship
Name two advantages of a sole proprietorship
- Ease of Setup/inexpensive
- Own time
- Flexibility
- Earnings taxed only as an individual, owner gets all profit
- Successful as you make the business
- Run business without having to seek advice
Two pros of starting a business as a general partnership
- Pool funds x2 resources
- divided workload/responsibilities/roles
- each owner should have an active role
This type of business is owned by stockholders who share in the company's profit/loss
Corporation
In February this college basketball player became the highest selling college athlete on the merchandise site Fanatics.
Caitlin Clark
Who are people who risk their time, money, and resources to start a business
Entrepreneur
Three advantages of a Franchise
- Lower risk
- Support / Training
- Brand Recognition
- Funding more available
An Entrepreneur only needs a great 'niche' idea
False.... needs passion, desire, strategy, plans
In a corporation, CEO stands for this role.
Chief Executive Officer
Founder of the Ford Motor Company
Henry Ford
Elected by stockholders to protect their investments, help guide the company and choose the CEO
Board of Directors
Business ownerships are categorized in four different forms types of
- Sole proprietorship
- Partnership
- LLC
- Corporations
Forbes list of the 400 richest Americans is dominated by entrepreneurs
Yes, it is true
2 Advantages of forming an LLC (Limited Liability Company)
- helps lower risk of business failure (limits liability)
- less government regulation as compared to a corporation
- taxes are paid by individuals
- flexibility/ease of setup
This dominant Premier League soccer team has the largest payroll in English soccer history, over $500 million
Manchester City
This business ownership setup combines elements of a partnership and a corporation
LLC Limited Liability Company
Two benefits a franchisee is given from the franchisor
- Use of trademark
- Financial support
- Human resources
Marketing/Ads
Name Recognition
Cons /disadvantages of a sole proprietorship
- Work long hours
- Responsible for all debts (unlimited liability)
- May have difficulty with funding
- Limited life of business
This top e-commerce retailer in China is this company.
Alibaba
Costco brings in $100-$200 million each month in sales of what?
Gold Bars
U.S. Government Agency created to consult and assist in the economy's growth and help entreprenuers
Small Business Administration
A disadvantage of the corporation setup is double taxation
T or F?
T
A type of business that is owned and managed by members of a group who benefit from the services the business provides
Cooperative CO-OP
A license that that helps identify the owner of a business -
DBA Doing Business As
Bonus - what is one ownership setup that may use a DBA?
Three of the Entrepreneurial Characteristics
- Vision
- Self Reliance
- Energy
- Confidence
- Tolerance of Failure & Uncertainty (risk taker)