Intro to Business Ch. 5 and 6
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
