1
a business that is owned and operated by one person
What is a sole propietorship?
Why do small businesses often fail? (there are three main reasons)
Lack of planning, poor management and inability to raise capital.
What are the two largest corporations in Iowa?
HyVee and Caseys
A person who owns a corporation's stock
What is a stockholder?
What does Fortune 500 mean?
They are top 500 largest corporations in the US, ranked by revenue.
a legal concept that means a business owner is personally responsible for all the debts of the business
What is unlimited liability?
This category of business includes haircutting, restaurant meals, and accoutning.
What is the service industy?
The top governing body of the corporation (these members are elected by the stockholders: CFO, CEO, etc.)
What is the board of directors?
a form of business ownership that provides liablity protection.
What is the LLC? (Limited liability company)
A person or organization purchasing a franchise
What is the franchisee?
This category of business that includes construction, mining and manufacturing industries.
What is the production industry?
an agreement of two or more people to co-own a business together.
What is a partnership?
shares of ownership of a corporation
What is stock?
An individual or organization granting the franchise
What is the franchisor?
a person that exists only on paper, but has the rights to operate a business (this is a type of business)
What is a corporation?
the actual granting of a franchise
What is Franchising?
a carefully constructed guide for the person starting a business
What is a business plan?
This category of business includes retailing, wholesaling, transportation, and communications.
What is a distribution industry?
a partner who only invests money into the business but does not help with the day-to-day activities or help run the business in any way.
What is a limited or silent partner?
Name two advantages of sole proprietorships? (HINT, from your pros/cons homework)
Ease of start up
pride of ownership
keeping all profits
no special taxes
be your own boss
a business that is independently owned and operated for profit.
What is a small business?
Name two things a corporation can do that demonstrates it is like a person?
*buy or sell property
*borrow money
*sue or be sued
*enter a contract
this concept protects the personal assets of investors, executives and employees in case a corporation is sued.
What is limited liability?
a governmental agency that assists, counsels and protects the interests of small businesses in the US
What is small business administration? (SBA)
a license to operate an individually owned business as though it were part of a chain of outlets or stores.
What is a franchise?