Business Organizations
The easiest and least expensive type of business to start.
What is a sole proprietorship?
A person who takes a risk to start and run a business
Who is an entrepreneur?
The chance that you may lose money when starting a business.
What is risk?
Another word for 'money invested into a business'.
What is capital?
Chick-fil-A is an example of this type of business model.
What is a franchise?
In this business type, profits and decision-making are shared between two or more people.
What is a partnership?
Someone who innovates inside a company rather than starting their own.
Who is an intrapreneur?
The potential to earn money and success when starting a business.
What is reward?
What is liability?
If your family opened a local baker, what type of business organization would it most likely be?
This type of business provides limited liability but is more expensive and complex to start.
What is a corporation?
Name one trait that most successful entrepreneurs share.
What is creativity, persistence, leadership, etc...
What is: the risk is losing money if it fails and the reward is profit if it succeeds?
The percentage of ownership someone has in a corporation.
What is stock/shares?
This entrepreneur founded Tesla and SpaceX.
Who is Elon Musk?
A business model where an entrepreneur buys the rights to use another company's name, products and systems.
What is a franchise?
This entrepreneur started Apple in a garage and revolutionized personal technology.
Who is Steve Jobs?
Why is risk important to entrepreneurship.
Without risk, there's little chance for innovation or reward
A document that gives an entrepreneur permission to sell a product/service using another company's brand.
What is a franchise agreement?
If a business owner wants to raise large amounts of money by selling shares, what type of business should they form?
What is a corporation?
Give one advantage and one disadvantage of being a corporation.
Advantage: limited liability
Disadvantage: double taxation, complex startup, most regulated
Explain the difference between an entrepreneur and a small business owner.
Entrepreneur- innovation, growth
Small business owner- stability, not always innovation
An entrepreneur invests in new technology that has never been tested in the market. What type of risk are they taking, and what could the reward be if it succeeds?
Risk → market/financial risk because the product may fail. Reward → profit, innovation leadership, and competitive advantage if it succeeds.
This is a resource owned by an individual that include property, money and equipment.
What is assets?
Warren Buffet took over ownership of this company making it one of the leading financial acquisitions in the world.
What is Berkshire Hathaway?