Forms
Which form of business ownership is the most common in the US?
________ _________ means the business is responsbible for the debt it incurs. If the business cannot pay its bills, the debt burden transfers to the owner(s), and he/she/they are liable for all debt.
Unlimited liability
When going into a partnership, you should always put all terms of the partnership into writing in a
___________ __________.
partnership agreement.
Starting an ____________ has its advantages in reduced franchise fees, lower start-up costs, and no territory restrictions.
online franchise
A small business is considered _____ only in relationship to other businesses in its industry.
small
Which type of business is easy to start, you keep all the profits, and there are no special taxes?
Sole proprietorship
Partnerships refer to more than one owner. A limited partnership _______
consists of general partners and limited partners, at least one of each.
The primary concerns when first starting your business are
financing and planning.
Although knowing your customers, managing employees and keeping records are vitally important, planning and financing are the primary concerns when first starting your business.
One key advantage of a franchise is
receiving management and marketing expertise from the franchisor
(1) management and marketing assistance, (2) personal ownership, (3) nationally recognized name, (4) financial advice and assistance, and (5) lower failure rate.
__________ technology, including broadband Internet connection and smart phones, has leveled the playing field between big business and small business.
Computer
taxed separately from its owners who also enjoy limited liability
C corporation
stockholders
A ____________ is a detailed written statement that describes the nature of the business, the target market, the advantages the business will have in relation to competition, and the resources and qualifications of the owner(s). Since potential owners are seeking funds, they will not yet have the name of potential lending institutions.
business plan
_________ are the people who buy franchises.
Franchisees
Entrepreneurs emphasize the importance of believing in your own ideas because in the process of developing those ideas you are likely to hear from skeptics. Characteristically, they also know that success or failure is "on them." These attributes are described as
self-directed and self-nurturing.
Self-directed entrepreneurs know they must be self-disciplined. Success or failure is in their hands. Self-nurturing entrepreneurs believe in their own ideas.
Small businesses often have advantages in international markets. One advantage is
Small companies can give more personal service and more undivided attention, because each overseas account is a major source of business to them.
Small businesses have a few advantages over big business in international trade like (1) overseas buyers like dealing with individuals, (2) small companies can usually ship faster, (3) small companies can provide a wide variety of suppliers, and (4) small companies can give personal service.
In a ________, members democratically control the business by electing a board of directors that hires professional management to run the business.
cooperative
Although the business plan has a great amount of detail and requires thoroughness, a well-explained business idea will come to life almost immediately in which part of this document?
the executive summary
It is a summary of the highlights of the document and strongly advocates the product's or service's competitive advantage.
coattail effect
Large and _____ businesses alike are concerned with raising capital, maintaining a good flow of information, marketing, and good management.
small
Similar to large businesses, small business have concerns about obtaining capital and good marketing and management practices.
An important source of information for small businesses is the ____________. Volunteers from industry, trade associations, and education counsel small businesses at no cost (except for expenses).
Service Corps of Retired Executives (SCORE)
______ _________ is an attempt by employees, management, or a group of investors to purchase an organization primarily through borrowing.
Leveraged buyout
Organizations known as ________ are often a source of funding for lower-income communities. These organizations have a significant role in the economic recovery and some start-up businesses have successfully found sources of capital by going through one of these organizations.
CDFIs (Community Development Financial Institutions)
International _________ is an area that offers good opportunities for both large, established franchises (i.e. McDonald's) and smaller, emerging franchises that offer distinctive products and opportunities.
franchising
Why do incubator facilities continue to remain very popular with start-up businesses?
By providing essential services to entrepreneurs, they have a very strong success rate.
By providing essential services to entrepreneurs, they have a very strong success rate.