Business Types
What type of business structure provides limited liability and pass-through taxation?
Limited Liability Company (LLC)
Who is responsible for the overall success of a company?
Chief Executive Officer (CEO)
What is the difference between hourly pay and a salary?
Hourly pay is a payment based on the hours worked, while a salary is a fixed payment amount for each pay period.
What is the purpose of an executive summary in a business plan?
The purpose of an executive summary in a business plan is to provide a brief overview of what the business intends to accomplish, including goals and financial outlook.
What does the term "risk tolerance" refer to in entrepreneurship?
Risk tolerance refers to the degree of variability in investment returns that an entrepreneur is willing to withstand.
Which type of business allows for double taxation of profits?
C Corporation
What term describes individuals or groups with an interest in a company's success?
Stakeholders
What is a compensation package?
A compensation package includes terms such as salary, benefits, responsibilities, and duration of employment
Name one key component included in a marketing plan.
One key component included in a marketing plan is market analysis.
What is the importance of having a growth mindset as an entrepreneur?
Having a growth mindset as an entrepreneur is important because it allows individuals to embrace challenges and learn from failures.
What is a franchise?
A franchise is a business model where the owner licenses their operations, products, or services to another party for a franchise fee.
What is the role of a Chief Financial Officer (CFO)?
The role of a Chief Financial Officer (CFO) is to manage and plan the company's finances, including cash flow and budgeting.
What does commission mean in an employment context?
Commission is a fee paid to employees for completing a specific task, typically in a sales environment.
What does SWOT analysis stand for?
SWOT analysis stands for Strengths, Weaknesses, Opportunities, and Threats.
Describe the 'Empathize' stage in the design thinking process.
The 'Empathize' stage in the design thinking process involves observing and engaging with customers to understand their experiences and needs.
Name one advantage of forming a Limited Liability Company (LLC).
One advantage of forming a Limited Liability Company (LLC) is that it provides limited liability protection to its owners.
What is a major responsibility of stakeholders on a board of directors?
A major responsibility of stakeholders on a board of directors is to ensure standards for management and oversee the company's direction.
How does piece work compensation operate?
Piece work compensation operates by paying employees based on the number of units they produce.
What is a Lean Canvas?
A Lean Canvas is a shorter alternative to a business plan that summarizes key components in two pages.
What are the stages of business existence?
The stages of business existence include the Existence Stage, Survival Stage, Success Stage, Take-off Stage, Resource Maturity Stage, Pivot or Persist Stage, and Exit Plan Stage.
What is the key difference between an S Corporation and a C Corporation?
The key difference between an S Corporation and a C Corporation is that S Corporations allow pass-through taxation, while C Corporations are taxed separately from their owners (double taxation).
Define what it means to be a major stakeholder in a business.
A major stakeholder in a business is an individual or group that has a significant interest in the company's success and decision-making processes.
Explain the concept of equity as a form of employee compensation.
Equity as a form of employee compensation refers to non-cash compensation that may include stocks or shares offered in lieu of cash or a lower salary.
What are the main objectives of a pitch deck?
The main objectives of a pitch deck are to inform and excite investors about the business opportunity.
How can an entrepreneur identify a viable business opportunity?
An entrepreneur can identify a viable business opportunity by assessing market demand, managing cash flow, and evaluating their skillsets and relationships.