Starting & Operating a New Business
This organization can assist small business owners to develop necessary skills and aid in helping the small business owner to secure financial capital.
What is the SBA? (Small Business Administration)
The number one reason for small business success.
Hard work, drive, and dedication = #1
Market demand for the products or services being provided.
Managerial competence
Luck
A major disadvantage for both Sole Proprietorship and General Partnerships.
Unlimited Liability
When two firms combine to create a new company.
Merger
__________, not loans, are the most important sources of money for small businesses.
Personal resources
This advantage occurs when a firm exploits an opportunity before any other firm does.
First-Mover Advantage
Name the number one reason for small business failure.
Managerial incompetence or inexperience = #1
Neglect
Weak Control Systems
Insufficient Capital
A major disadvantage of a corporation.
Double Taxation
Disney purchasing Marvel is an example of this.
Acquisition
These people or entities are the owners of corporations.
Stockholder or Shareholder
An ________________ market is one in which many firms compete according to relatively well-defined criteria (i.e. video rental companies)
Established
The number one trend in small business growth.
Emergence of E-Commerce = #1 Trend
Crossover from Big Business
Opportunities for Minorities & Women
Global Opportunities
Better Survival Rates
The percentage of U.S. businesses are made up what type of business ownership structure?
Sole Proprietorship
Corporations make up the largest percentage of sales revenues in the U.S.
Strategy whereby a firm sells one or more of its business units, typically to focus on its core business.
Divestiture
These individuals control the day-to-day operations of a corporation.
Officers and CEO (Chief Executive Officer)
A segment of the market that is currently not being exploited.
Niche
Name the success rate for small businesses within a four-year period.
What is 44%?
This type of corporation is held by only a few people and is not available for sale to the public. It is the most common type of corporation in the U.S.
Closely Held (or Privately Held)
Large investors, such as mutual fund or a pension fund, that purchases large blocks of corporate stock.
Institutional Investors or Institutional Ownership
Groups of small investors seeking to make profits on companies with rapid growth potential.
Venture Capitalists
Name two of the three areas a well-written business plan consists of.
Setting Goals & Objectives
Sales Forecasting
Financial Planning
Many entrepreneurs find new opportunities in foreign markets. Name this type of opportunity.
An offer to buy shares made by a prospective buyer directly to a target corporation's shareholders, who then make individual decisions about whether to sell.
Tender Offer
(They are not going through a broker.)
An arrangement in which a corporation holds its own stock in a trust for its employees, who gradually receive ownership of the stock and control its voting rights.
ESOP = Employee Stock Option Plan
Name the three options a small business owner has when deciding what type of business they should start.
Buying an Existing Business
Franchising
Starting From Scratch