Small Business
True or False
Most businesses in the US are large businesses with 500+ employees
False, ~86% of businesses are small businesses.
To start a business you can franchise, buy an existing business, or do what?
Start from scratch
This kind of business has low start up cost, owned by a single person, and unlimited liability.
Sole Proprietorship
The process of seeking business opportunities under conditions of risk
Entrepreneurship
Two businesses, Rio Books and Devereaux Holdings, collaborate to create and run a new bookselling business that is owned by both businesses. What is this action called?
Joint Venture
What industry group makes up for the largest segment of small business enterprise?
Service
This is one of the three ways to start a business. In this way you may be obligated to contribute a percentage of your sales to a parent corporation.
Franchising
This type of corporation has tax benefits like a partnership, while protected with the liability like a normal corporation.
LLC (Limited Liability Corp) or a Subchapter S/S corp
The name of the document that summarizes an entrepreneur's business strategies for a proposed new venture. (Hint: You are making one this year)
Business Plan
When a company sells/sets up a part of its business as a new company to create profit.
Spin-off
Who are the owners of a corporation?
Stockholders
True or False
Lending institutions are more likely to help finance the purchase of an existing business rather than the start-up of a business from scratch, as the existing business risks are better understood.
True
This type of business has two or more owners who share in the operations, and have unlimited liability... aka they are responsible for all business debts
Partnership
Which one of the following is NOT an entrepreneur characteristic?
self-confident
lazy
creative
hard-working
calculated risk-taking
lazy
The CEO, COO, President, CFO, and Vice President are all which of the following?
Owners
Members of the Board of Directors
Officers
Officers
True or False
Manufacturing is overwhelmingly handled by small businesses.
False, only 3.46% of small businesses are manufacturing businesses.
True or False
Sole proprietorships depend mostly on personal resources (resources of the owner).
True
What type of company has stock that is widely held and available for sale to the general public.
Public Corporation
A situation where an entrepreneur can take action to make a profit.
Entrepreneurial Opportunity
BrightLights Online Video purchases another company, QuikFlix. What is this an example of?
Acquisition
This is the government agency charged with assisting small businesses. It has the abbreviation SBA.
Small Business Administration
What is the ONLY letter in the alphabet that is not found in any state's name.
WHAT IS Q!!!!
A type of corporation, often used by lawyers or doctors, that has limited business liability, but unlimited professional liability (like a medical malpractice lawsuit)
Professional Corporation
This is a person who behaves like an entrepreneur within an organization.
Intrapreneur
American Business Machines is organized as a corporation. Its income will be taxed at the corporate level and also on dividends to shareholders. What is this situation known as?
Hint: it will be taxed twice
Double Taxation