Understanding ENTREPRENEURSHIP
How many employees can a business have to be considered a small business?
1-500
As your business’s Chief Financial Officer, what are the two major skills you will need?
Budgeting and Accounting
How much more likely is it for a business to launch if the founder creates a business plan?
260%
What are the three main categories of business funding?
Self funding, investors, and loans
Which of the following is a reason to separate your business money from personal money?
To protect your personal assets if the business fails
How does social entrepreneurship differ from traditional business entrepreneurship?
It focuses on social goals, rather than making a profit
Which of the following best describes the skill set needed for a business's Marketing Director?
A mix of statistics, psychology, and art
Describe two potential consequences of trying to launch a business without a business plan.
What source of funding is used most often to start new businesses?
Personal or family savings
Which structure allows the owner to run the business under their personal name, leaves them personally responsible for debts of the business, and requires them to report the business’s profits and losses on their personal taxes?
Sole proprietorship
What is an example of entrepreneurship?
Starting a new business
Which of the following best describes the role(s) an entrepreneur plays within their business?
Focused on multiple roles and functions of the business
Which of the following best describes a business plan?
A document that outlines your goals and how you plan to achieve them
Which consideration before starting a business will help most if you run into cash flow problems (not having cash when you need it)?
Build an emergency fund
Which structure requires a DBA (“doing business as”), a personal identification number, and requires the owners to report profits and losses on their personal taxes?
Partnership
Kacey started a new business and has rapidly expanded since gaining the support of outside investors. What type of entrepreneurship is this?
Scalable startup
What are the top two reasons reported as why startups fail?
Ran out of cash/no market need
Each of the following is a common section included in a business plan EXCEPT…
Tax history
In which business type(s) can the business owner(s) find themselves personally liable?
Sole proprietorship and partnership
Which structure legally protects the owner(s) from liability but still requires the owner(s) to report profits and losses on their personal taxes?
LLC
What is one way entrepreneurship impacts the economy?
By creating jobs
To make sure a company lives up to its mission statement, it should establish and follow the guidelines of a…
Code of ethics
Which of the following best describes an executive summary?
An overview of your entire business plan that will give readers a high level look at your overall business
Each of the following is a type of credit that can be used to start a business EXCEPT…
Stock dividends
Which structure legally protects the owner(s) from liability and allows the business to file its own taxes to report profits and losses?
Corporation