Business Unit 1
Sole Proprietorship
A business owned by one person. These make up 70% of businesses
Corporation
A company of shareholders that invest money in the company in return for shares of ownership a corporation is a legal entity and must receive a charter in the state where it operates
Partnership
A group or association of between two or more people who agreed to own and run a business together
What are characteristics of generation z
Accepting of others, care about health and future, multitasking
Accounting and Finance
Accounting is A process by which financial information is communicated to owners managers and other interested parties in order to make important decisions
Marketing
Activities that identify the particular wants and needs of a target market or customer. Does research on customers(makes strategic decisions about product, design, pricing, promotion, and distribution)
Advantages to the franchisee
Advertising in training is paid for by franchisor, business has a greater chance of success, banks are willing to lend money to franchisee, gets support from franchisor
Three tips for a successful interview
Arrive 10 mins early, dress nice, be prepared, research on company
What is a business?
Business is an activity that provides for the wants and needs of a person group or organization
service business
Businesses that produce intangible products. These products are on the area of finance, transportation, utilities, wholesale, banking. Ex. Movie theatre
goods-producing businesses
Businesses that produce tangible products by engaging in activities such as manufacturing construction and agriculture ex. Apple -phones
Advantages of a franchisor
Can expand her business without investing large amounts of money, risks are reduced, regular royalty payments are made, expansion is much faster, businesses are profitable
Why is choosing a good name for a business important?
Catchy short names attract customers which result in more profit
Disadvantages of being a franchisor
Companies name and reputation candy ruins, initial high costs, ongoing cost for a national advertising training and support of franchises
Disadvantages of a partnership
Disagreement between partners, if partner dies business dies, unlimited liability, shared profits
Advantages of Sole Proprietorship
Easiest to start, owner has complete control, owner keeps all profits, owner chooses holidays breaks etc.
What generation are we?
Generation z
Why do we need personal goals?
Hardwork is driven towards a specific achievement
IT (information technology)
IT has to do with maintaining the computer network all Internet relationships with customers use the business webpage
Three reasons why businesses fail
Lack of planning, lack of leadership, not enough funding
Disadvantages to the franchisee
Less independence, continuous royalty payments to the franchise or, may not be able to sell business without franchises approval, could be tied into buying supplies at higher prices from franchisor
Advantages of a corporation
Limited liability, easier to raise capital, unlimited life, high degree of specialization
Three ways to find a new business?
Loan, stocks, friends or family money
business departments
Marketing, accounting and finance, Human Resources, legal, IT (information technology)
non-for-profit organization
Organizations that exist to provide social, educational, and other services ex. Red Cross
Disadvantages of Sole Proprietorship
Owner has unlimited liability, hard to finance, likely to remain small, business dies if owner dies
Advantages of a partnership
Owners have complete control over business, more capital, partners can offer special skills and additional knowledge, partners can cover each other's absence(continuity)
Skills needed to be a manager
Plan, organize, direct, control(evaluate)
4 p's of marketing
Price, product, place, promotion
What should a business owner know about their competition?
Pricing, strengths and weaknesses, location
human resources
Responsible for hiring firing and motivation of employees and business impact in communities
Three methods to promote a business?
Set up a website, talk to vendors, give samples
Why is it important to have business goals?
So that your business can be successful/profitable
SMART goals
Specific, Measurable, Attainable, Realistic, Timely
Disadvantages of a corporation
Taxes are higher, shareholders can receive some of profit, may have communication and management problems, there are a lot of legal issues to overcome
Franchise
The granting by one company to another company of the right to use its products and image
Management
The level of an organization where decisions are made and policies are interpreted to guide a business toward accomplishing its mission
What is marketing?
The promoting and selling of a product
legal
This department is responsible for making sure the company follows all legal responsibilities and procedures required by the government
Mission Statement
a short, specific written statement of the reason a business exists and what it wants to achieve(goal of a business that is specific to that business)
What economy does the US have?
mixed (capitalism/socialism-we can have private property, level of economic freedom but government can step in when needed
Venture capitalists
persons or organizations that agree to provide some funds for a new business in exchange for an ownership interest or stock
economy
the wealth and resources of a country or region, especially in terms of the production and consumption of goods and services.
Angel investors
wealthy individuals in the business community willing to risk investment funds on a promising business venture
profit
what remains after all business expenses have been deducted from sales revenue