Concepts of Entrepreneurship
an organizer, manager, and assumer of risk for a business or enterprise
What is an entrepreneur?
Control your own destiny, Giving back to your community, Investing in yourself, Pursuing your passion and creating something from nothing
What are some advantages of starting a business?
Distributorship, dealership, network marketing
What are three primary types of other business?
unincorporated business with one owner, has total control over the entire venture and because the business's financials are not considered separate from those of the owner, he or she keeps all the profits, Owners are not protected from legal liability.
What is sole proprietorship?
a business that is legally separate from its owners, the shareholders.
What is a corporation?
Poor sales or low public interest, Health issues caused by stress, Potential loss of personal capital invested
What are potential risks of creating a business?
No proven systems or sales, No existing supplier contracts, No known product market fit, No reliable data for business success
What are some disadvantages of starting a business?
a franchise where a business (the dealer) sells one brand of product to retail consumers.
What is a dealership?
he simplest form of business with more than two owners, it does not pay taxes on the income it makes
What is a partnership?
main type of corporation, taxed separately from its shareholders, file their own taxes and are responsible for paying their debts, taxed twice because they pay income tax on money the company earns and a tax on any profits, also called dividends, paid to their shareholders.
What is a C Corporation?
Passionate and ambitious, Knowledgeable of products and markets, Self-reliant and confident
What are characteristics of a successful entrepreneur?
Having an employee as custodian while you are "the boss", Existing company assets and cash flow, Already having a product, customers, and a business reputation
What are Some advantages of purchasing an existing business?
sells a company's products and services in addition to recruiting other representatives to do so.
What is Network Marketing?
all members agreeing to be responsible for the business's debts, called unlimited liability.
What is a general partnership?
benefit corporation or a corporation that makes a profit and provides some social or environmental benefit to the community.
What is a B Corporation?
Flexible work schedules and Making your own decisions
What are rewards to starting your own business?
A loan to purchase the business that you will have to repay, Old or inefficient technology will need to be replaced, A less than positive reputation from the previous owner.
What are disadvantages of purchasing an existing business?
Businesses buy and resell a variety of non-competing products or services.
What is Distributorship?
simply investors; they provide the money but have little control over how the business is run.
What are limited partners?
designed to get around the double taxation.
What is a S Corporation?
poor time managers, unable to delegate work to others, impulsive decision-makers, inept administrators, and have personalities that do not support their entrepreneurial lifestyle.
What are weaknesses in an entrepreneur?
someone agrees to sell products under the company's name.
What is a franchise?
the agreement between one business and another to sell that business' products or to use that company's brand name and trademark to sell its own products.
What is Licensing?
Sole Proprietorship.
What is the simplest form of small businesses?
bridge between partnership and corporation. This business structure protects the owners from being personally responsible for company debt while allowing profits and losses to be reported on members' Individual Tax Returns.
What is a Limited Liability Company?