Small business management unit 3

Identifying and describing the types of customers to whom you will sell

Target market analysis

Disadvantages of Partnership

Unlimited liability Management disagreements Lack of continuity Frozen investment

Economic Base

a community's collection of basic businesses

Consumer-oriented marketing

a company should view and organize its marketing activities from the consumer's point of view

S corporation

a form of corporation that avoids double taxation by having its income taxed as if it were a partnership

Census of Population

a source of market data that compiles population statistics with regard to distribution of population by region, area, etc.

market survey

a study that is used by a business to determine where the potential customers are located

Business Plan (New Venture Plan)

a written description of a new idea that projects marketing, operational, and financial aspects of a proposed business.

Advantages of Partnership

ability to share work, ability to share risks

A Chamber of Commerce is

an association of business people who attempt to protect and promote the commercial interest in a community

Chamber of Commerce

an association of business people who attempt to protect and promote the commercial interest in a community

In a business plan, the key statement in the financial plan is the

cash flow statement

disadvantage of corporation

double taxation - taxed at the corporate level when they are earned and again at the personal level when they are paid out

Population Trends

growth and movement of the population

Demographics

the characteristics of a population with respect to age, race, and gender.

The answer to the question of whether you need a business plan is

"It just depends "

A business plan should generally project financial and operational aspects of the proposed business for the first

3-7 years

Partnership

A business in which two or more persons combine their assets and skills

Sole Proprietorship

A business owned by one person

Corporation

A business owned by stockholders who share in its profits but are not personally responsible for its debts

C Corporation

A corporation that elects to be taxed as a corporation

Limited Liability Company (LLC)

A hybrid form of business enterprise that offers the limited liability of the corporation but the tax advantages of a partnership.

site location

A location for a business

limited partnership

A partnership with one or more general partners and one or more limited partners.

A business plan is

A selling document

The key to the success of a business is

A sound marketing plan

Which of the following best defines a partnership

A voluntary association of two or more persons to carry on, as co owners, a business for profit

Marketing

A way of telling a story of a business, it's products and services

The ability of any partner to legally bind in good faith other partners

Agency power

Writing a business plan should be thought of as

An ongoing process

A sole proprietor

Assumes all losses of the business

The executive summary in a business plan should come

At the beginning

Experience has shown that an effective plan should

Be brief

Should be brief and seldom exceed 40 pages in length

Business plan

Most common type of corporation is

C Corporation

The statistical study of human populations with respect to their size, density, distribution, composition, and income is called

Demographics

Disposable income trends of the community

Disposable income is the income available for spending after taxes

payroll forms

Documents provided by the employer for the employee to complete

Advantages of Sole Proprietorship

Ease of start-up and closure Pride of ownership Retention of all profits No special taxes Flexibility of being your own boss

FICA

Federal Insurance Contributions Act also known as Social Security

A business plan is best described as a

Game plan

Permission to incorporate a business comes from the

Government, usually through a secretary of state

The primary outside users of business plans are

Investors and lenders

In the context of our studies, a Market

Is a group of potential customers possessing purchasing power and unsatisfied needs

Ownership in a corporation

Is more easily transferable than ownership in other forms of organization

Which of the following is not one of the basic objectives of the business plan

It outlines the approaches other entrepreneurs have taken in the same industry

Advantages of a corporation

Limited liability Unlimited life Separation of ownership and management Transfer of ownership is easy Easier to raise capital

Owners are known as members

Limited liability company (LLC)

The process of planning and executing the development pricing, promotion, and distribution of an organization's goods/services is called

Marketing

_________ is a section of the business plan that describes the user benefits of the product or service and the type of market that exists

Marketing plan

A potential investor's single goal is to

Maximize potential return on investment through cash flows received while minimizing personal risk exposure

Advantages of Limited Liability Company

Members are liable for the debts and obligations of the business only up to the amount of their investment. The number of shareholders is unlimited. An LLC can elect to be taxed as a sole proprietor, partnership, S corporation, or corporation, providing much flexibility. Because profits are taxed only at the shareholder level, there is no double taxation.

competition

Others out there doing what we want to do

The owner of a sole proprietorship

Owns the business

Which of the following legal forms of an organization allows owners to contribute no capital but still play a part in managing the business and share in its profits

Partnership

4 components of a business plan

People, opportunity, content, risk/reward

Obtained from government sources and through the internet

Public market data

One of the primary functions of a business plan is

Serve as a selling document- selling your ideas and yourself to others

Most appropriate form of business for a new small business

Sole proprietorship

Marketing Research

The gathering, processing, reporting, and interpreting of marketing information

A disadvantage of a sole proprietorship is

The lack of limits on personal liability

payroll

The sum of money paid to employees in a given period

Social and business climate

The variety of businesses and lifestyles in a community

The mission statement is best described as the

intended strategy and business philosophy for making the entrepreneur's vision a reality.

Business planning

is an ongoing process

Census of Business

source of market data that explains where certain businesses are located

Census of Manufacturing

source of market data that explains where certain manufacturers are located

Census of Housing

source of market data that keeps track of new home sales by region and/or the construction of new houses by region and specific area.

Disadvantage of LLC

state LLC statutes are not uniform

w-9 form

tax payer identification and certification

Disadvantages of Sole Proprietorship

unlimited liability, lack of continuity, lack of money, limited management skills, difficulty in hiring employees