Intro to Business Ch. 5 and 6

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The Rewards of Enterpreneurship

Being the Boss Doing What you Enjoy Having the Opportunity to Be Creative Building an Enterprise

Being fully responsible for the business is a challenge of entrepreneurship because

Business owners must see that everything gets done--from sweeping the floors to handling financial records.

Small businesses employ more than ____of the US workforce

50%

Partnership

A business owned by 2 or more people who share its risks and rewards

Retailer

A business that purchases goods from a wholesaler and sells them to consumers, the final buyers of the goods

growth plan

looks at how the business will expand in the future

Accounting

maintaining and checking records, handling bills, and preparing financial reports for a business

Entreprenuers are ________ for assuming risk.

rewarded

More than 99% of business firms are

small businesses

Some home based business experts say...

the best opportunities to start a home-based business stem from task employees do for their employer

The 3 main types of business

Sole Proprietorship Partnership Corporations

Finance

The business or art of money management

Procurement

The buying and reselling of goods and services that have already been produced

Management

The process of achieving company goals by planning, organizing, directing, controlling, and evaluating the effective use of resources

Marketing

The process of planning, pricing, promoting, selling, and distributing ideas, goods, and services

Personal Characteristics of Entrepreneurs

1. Persistent 2. Goal-Oriented 3. Creative 4. Risk-taking 5. Action oriented 6. Independent 7. Self-confident 8. Responsible 9. Inquisitive 10. Restless 11. Self-Demanding 12. Enthusiastic

The first steps of starting a business

Doing research and writing a business plan

Advantages of a sole proprietorship

Easy to Start Proprietors are in charge Proprietors keep all the profits Taxes are lower than a corporations

Challenges for Entrepreneurs

Feeling alone and insecure about making the right decisions Long work hours Uncertain income levels Risk of faillure

Getting Funds to Start a business is a challenge of entrepreneurship because

Financial institutions are concerned about whether the business would succeed and they would be repaid.

_______________ is a major advantage of a corporation

Limited Liability

Entrepreneurs develop their own

Schedule

Executive Summary

a brief account of the key points contained in a business plan

Sole proprietorship

a business owned by 1 person

Processor

a business that changes raw materials into more finished products

Producer

a business that gathers raw goods

Wholesaler

a business that moves good from one business to another

Corporation

a company that is registered by a state and operates apart from its owners

Franchise

a contractual agreement to use the name and sell the products or services of a company in a designated geographic area

Venture

a new business undertaking that involves risk

403B

a tax sheltered annuity plan

Nonprofit organization

a type of business that focuses on providing a service, but not making a profit

Business plan

a written description of a new business venture that describes all aspects of the business

Cooperative

an organization that focuses on providing a service, but not making a profit

There are 15 essential parts of a __________ _____

business plan

SBA (Small Business Administration)

created a checklist to help people see if they have the recommended traits for a career in etrepreneurship

Entrepreneurs contribute to the _____ and help create jobs.

economy

Vision Statement

establishes the scope and purpose of a company and reflects its values and beliefs

Mission statement

expresses the scientific aspirations of a company and the goals it will try to reach

Limited liabilty can

hold a firms owners responsible for no more than the capital that they have invested in it

Many entrepreneurs run ____________ businesses.

home-based

To form a corporation

owners must get a corporate character from the state where their main office will be located

To start a partnership you need a

partnership agreement

small businesses are the ______force of new jobs

principal

Company description

provides an outline of the business and helps investors understand the size, scope, and type of business you plan to start

Financial plan

provides forecasts for the business

Entrepreneurs are people who

recognize opportunities, organizes, manages, and assumes the risks of starting and operating a business

Production

the process of creating, expanding, manufacturing. or improving goods and services

Entrepreneurship

the process of recognizing an opportunity, marketplace testing, and gathering the resources necessary to go into business

Unlimited liability

when the owner is responsible for the company's debts


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