1
The result of two firms forming one company
Merger
One company's purchase of the property and the obligations of another company
Aquisition
A short presentation (10-15 slides) that explains a business idea to investors, banks, and partners
Pitch Deck
A right to use a specific business name and sell its products or services in a given territory
Franchise
A business that is owned and usually managed by one person
Sole proprietorship
50% of small businesses do NOT last ___________ years?
Five
Venture capitalists are willing to offer small businesses financial support for their business at no cost.
True/false
False
They can require as much as 60% of your profits
A business entity with authority to act and have liability separate from its owners
Corporation
People with unsatisfied wants and needs who have both the resources and the willingness to buy
Market
A US agency that advises and assists small businesses by providing managerial training, financial advice, and loans
Small Business Association
The JOBS Act allows businesses to use fundraising sites to solicit larger investments in exchange for ownership in their business.
True or False
True
The elements of the Business plan include:
Executive summary, Management, Introduction, Legal, Financial, and _______________________.
Marketing
To have S Corporation status, it is required that you have more than 300 stockholders.
True or False
False
You have to have fewer than 100 stockholders
Home-based small business owners are known as
micropreneurs
Corporations represent __________% of all business in the U.S. and earn ___________ % of the total U.S. proftits.
20% and 80%
What are the 3 major forms of business ownership in the U.S.?
Sole Proprietorship
Partnership
Corporations
Private individuals who invest their money in potentially hot new companies before they go public
Angel Investors
Soda company and artificial sweeteners
Vertical Corporate Merger
Unites firms in completely unrelated industries to diversify business operations and investments
Conglomerate Corporate Merger
Unlimited liability, division of profits, disagreement among partners, and difficulty of termination are disadvantages of what type of business arrangement?
Partnership
Two advantages and two disadvantages of forming a corporation are:
Advantages: limited liability; ability to raise more money for investment; size; perpetual life; ease of ownership change; ease of attracting talented employees; separation of ownership from management
Disadvantages: initial cost; extensive paperwork; double taxation; two tax returns; difficulty with termination; size; conflicts
List 2 advantages and 2 disadvantages of a Sole Proprietorship
Advantages: ease of starting/ending; be your own boss; pride of ownership; get to keep your own profit
Disadvantages: unlimited liability; linked financial resources; management difficulties; overwhelming time commitment; few fringe benefits; limited growth; limited lifespan
Two advantages and disadvantages of forming a franchise are...
Disadvantages: big startup cost; shared profit; marketing regulation; coat-tail effects; restrictions on selling
What is an entrepreneurial team?
A group of experienced people from different areas of business who join to form a managerial team with the skills to develop, make, and market a new product.
What is the SBA, and what are two ways it supports small-business owners?
Small Business Administration
Provides financial assistance to small businesses; Provides technical assistance; The SBA licenses SBICs, which are private investment companies that loan money to small businesses; Provides counseling and advice