Entrepreneurship
What attracts individuals to become entrepreneurs?
freedoms, money, work for themselves
Why is it important to have a business plan?
To have a plan, build confidence, to secure a loan
T/F Proprietorship is the most common business organization.
True
How many partners can there be in a partnership?
2 or more
Name a few characteristics of entrepreneurs.
Hard worker, full of energy, self motivator, creative
Describe the goals and objectives section of the business plan.
Basic results expected in the short or long run. Results in terms of sales volume or profit.
What is the name of the manager for a one owner business?
Proprietor
Why is it important to have a written agreement between partners?
Prevent problems later and provides responsibilities of each partner, no one to blame if a task doesn't get done
Why is it an advantage for a partnership to have skills and abilities pooled?
Each individual will bring something to the business (knowledge base)
Is there a magic age for starting a business?
No, teenagers, adults and retirees have started businesses
Describe the marketing plan of the business plan.
Customers demand, prices, and comparison to their competitors
If proprietors are unable to pay their debt, who would claim their assets and property?
Creditors
Why might a partnership be operated more efficiently than a proprietorship?
More skills and abilities, knowledge, background, customers, money, credit improved, reduced competition
Name a few examples of businesses that are suited to be proprietorship or partnership.
Barber shop, accountants, law firm, doctors, nurses
Why is it important for the United States to encourage entrepreneurship?
Encourage small businesses to succeed, and allow more businesses in the United States
Describe the financial plan of the business plan.
Investment needed, projected income and expenses, start up money and cash flow
Name three advantages of proprietorship and explain.
Own boss (make quick decisions, can be creative too), owner receives all profit (able to put the money back into the company), Owner knows the workers (able to build trust)
Distinguish the difference between limited financial liability and unlimited financial liability.
Limited one partner pays only debt he invested, but general partner has unlimited. Unlimited partners may have to pay other partners debt
Why is it difficult to withdraw from a partnership?
Partner may not agree on new partner. Never agree
One of the very first decisions a budding business owner must make is what ____ form of ownership to adopt.
Legal
Why is the nature of the business important for the business plan?
Gives a detail description of the products, location and size of business and background of the entrepreneur(s)
Name three disadvantages of proprietorship
Lack of skills and abilities, owner lacks funds, owner bears all loss
Can a partnership with two individuals name their business Smith, Murphy & Company?
No
Discuss the responsibilities of owning your own business.
Legal issues, money, management, time, decisions, employees, profit, expenses/revenue