Business Models
Describe a precise course of action for how a company will secure customers & generate income.
What is a Business Model?
Owners have limited liability & are not held directly accountable for the company's losses.
What is a Limited Liability Company (LLC)?
Agreement defines the terms and responsibilities in a partnership.
What is a Partnership Agreement?
A group of individual who represent stockholders & make high-level policy & mgt decisions for a corporation.
What is Board of Directors
A type of business owned & managed by members of a group who benefit from services the business provides.
What is a Cooperative (Co-op)?
Employees of a business sell a product directly to a consumer
What is Direct Sales Model?
A business owned by stockholders who share in profits & losses
What is a Corporation?
Involves at least 1 general partner who assumes operations control & unlimited liability
Document that outlines the internal rules and procedures of a corporation.
What are Corporate Bylaws?
A share in ownership and a claim to a portion of a corporation’s profits
What is Stock?
An agreement where another business owner can use a company's name and business model.
What is a Franchise Model?
A form of business owned by 2 or more individuals who share management & profits.
What is a Partnership?
A business owned and operated by a single individual
What is a Sole Proprietorship?
A portion of a company's earnings distributed to shareholders
What is a Dividend?
Companies that are created to benefit a public interest.
What is a Not-For-Profit Business?
Company provides goods or services for free but later charges for extra features.
What is a Freemium Model?
Organization that generates income for its owners
What is For-Profit Business?
Gives the owners full control over business decisions regarding the company.
What is General Partnership?
A corporation that requires its owners to file their profits & losses on their personal tax returns.
What is an S-Corporation?
Customers pay an up-front price for a product.
What is a Subscription?
List the 4 common business models
What is Direct Sales, Franchise, Freemium & Subscription Models?
What is Organizational Design?
Abbreviation is DBA
What is Doing Business As?
Type of business ownership that involves the collecting of small investments from a large number of individuals.
What is Crowdfunding?
A document that outlines the procedures for how an LLC will function.
What is an Operating Agreement?