Legal Structures
This business type is the easiest to start but leaves the owner personally responsible for all debts.
sole proprietorship
This pricing method adds a markup to the total cost to determine price.
Cost-plus
Efforts to increase how easily a website appears on Google search results fall under this strategy.
SEO (search engine optimization)
This protects an inventor’s unique process or product idea.
patent
Owners of this business structure avoid double taxation but must meet IRS restrictions such as having fewer than 100 shareholders.
S Corp
This pricing term refers to the lowest amount you can charge while still covering costs.
Pricing floor
Marketing that relies more on creativity and networking than on money.
Bootstrap Marketing (virtually free promotions)
This symbol (™) protects a brand name or logo.
trademark
This group is legally required in corporations to make high-level decisions and represent shareholders’ interests.
Board of directors
A store that sells milk or bread at cost to draw customers inside is using this strategy.
Loss-leader strategy
Why might a small business prefer bootstrap marketing over paid digital advertising even when budget allows for it?
Because it builds authentic, relationship-based awareness and leverages creativity and partnerships instead of relying solely on ad spend, fostering longer-term loyalty.
This legal right lasts for the life of the author plus 70 years.
Copyright
When two or more individuals share profits, losses, and management responsibilities equally, they’ve formed this type of business.
General partnership
When customers are highly sensitive to price changes, demand is said to be this.
elastic
This type of market contains many small competitors and no clear leader.
Fragmented market
A cleaning company requires its employees to enter clients’ homes. To protect against theft or property damage caused by workers, the company purchases this type of insurance coverage.
bonding
When employees are hired, this number issued by the IRS is legally required for payroll and tax reporting.
EIN (employee identification number)
This analysis determines what percentage of the total market your firm can realistically capture.
Market potential estimate
A promotion that costs something but also benefits from community or partner involvement.
hybrid-model promotion
The legal document that defines how owners share profits, losses, and responsibilities in a partnership.
Partnership agreement