Domain 1

When an employee is hired, they sign a contract that outlines the employee's and the employer's _________ and the terms of employment.

Obligations.

A lean canvas should only be ___ page long, discussing key information, without all the details one would see in a business plan.

One

When considering the reliability of the management for a business opportunity, what else should one consider at this time?

One's own skillset

Small business

Owned and managed by one individual or sometimes a small group of people with a focus on generating profits

Rose ordered a package of macaroons from an out-of-state bakery. She received the cookies the following week. What type of e-commerce product did rose order?

Physical

Jane is an investor in a full-detail carwash that opened several years ago. She has been very pleased with the company's management after helping select a new CEO two months ago. Which describes the role Jane plays in the full-detail carwash?

Stockholder.

Sharon owns a law firm. She has recently begun earning more money, and the firm's finances are doing well. In which business life cycle is Sharon in?

Success

Mike is the owner of a doggy daycare and grooming business. The business is economically healthy, and he is looking for ways to finance future growth. In which business life cycle is Mike?

Take off

Which is a characteristic of a business opportunity?

The buyer has a guaranteed profit of at least 10% of the seller's original price for the product.

Pitch Deck

A brief overview of a business plan, the funding needed, and financial projections.

Franchise

A business where the owner licenses their operations, products or services, branding, and knowledge for a royalty fee

S corporation

A for-profit corporation with a lower tax rate that prevents the company from being double taxed

Business Plan

A written document that details how a business will be structured, managed, run, and grown.

LLC (Limited Liability Company)

Allows the owners to pay taxes on their profits or loses through their own taxes using a personal tax rate. This legal structure is ideal for a single owner seeking low risk.

Entrepreneur

An individual with an idea to offer an innovative product or service about which they are passionate

One should know if there is _____ for a product before taking on a business opportunity.

High demand

Appliance World is a top-rated appliance manufacturer. Super Steel supplies metal to Appliance World to build their appliances. What type of transaction is this?

B2B

A common financial risk that entrepreneurs encounter is _______

Bankruptcy

Anytime someone wants to use a _________ on their products, they must obtain a license to use them.

Brand name

Which corporation uses a double layer of taxation?

C Corporation.

Billie manages the budget for a toy manufacturing company. In addition to this, she also negotiates financial matters with other companies on collaborative projects. Which best describes the role Billie plays in the toy manufacturing company?

CFO

Korryn works at a convenience store. When she was hired, she was told that she would be working 40 hours per week and receive $15 per hour of work. In addition to this, the company gives all employees partial ownership of the company in the form of shares. Which two forms of compensation does Korryn receive for her work?

Hourly and equity

Lean Canvas

Covers problems and solutions, value proposition, marketing channels, key metrics, costs, and revenue without all of the business plan details

What are the two advantages of selling digital products?

Delivery is instantaneous and inexpensive. Not needing physical storage, inventory, or additional employees.

Tim purchased a movie from a popular streaming service. H received immediate access to the movie. What type of e-commerce product did Tim purchase?

Digital

Tommy was hired to help boost a startup company's sales and marketing strategies. The startup company does not have enough cash to continue paying Tommy his full salary. Tommy is passionate about the company's vision and has agreed to receive some of his pay in company stocks. Which two forms of compensation is Tommy receiving for his work?

Equity and salary

Joey has opened a restaurant. He paid a large amount of money up front to get the business started. He only sells products that are licensed by someone else. What type of business opportunity is Joey a part of?

Franchise

Non-profit

Has no ownership and pays no US federal taxes

Companies run the risk of employee's sharing trade secrets. Which two documents do many companies have their employees sign to help mitigate this risk?

NDA and confidentiality agreement

What are the three disadvantages of selling physical products?

Needing employees to track the supply. Shipping and packaging costs. Needing storage space.

Elizabeth sells makeup and has a team of distributors that she has recruited to sell makeup with her. She earns a percentage from all of the sales that the distributors make. What type of business opportunity is Elizabeth a part of?

Network Marketing

Jeff works for Green Grass Mowing Company. He is paid a fixed amount for each lawn he completes during the day. In addition to mowing lawns, Green Grass Mowing Company offers its customers a fertilization treatment for an additional cost. For every fertilization treatment Jeff secures, he receives an additional $7 in pay. Which two forms of compensation does Jeff receive for his work?

Piece work and Commission

Dylan owns a small grocery store. The store has not been receiving a lot of business during the last few months and has been making a low profit. Dylan has a meeting scheduled to discuss these issues with other employees of the grocery store. In which business life cycle is Dylan?

Pivot or persist

C Corporation

Profits are taxed when earned, and then the shareholders' dividends are taxed after they are distributed. This legal structure is best for international businesses

Factors that aid in determining whether or not a business opportunity is viable include market size, _______, manage of cash flow, management skillsets, and passion.

Relationships.

What might the design team need to do during the design thinking process?

Revisit previous stages

What are two benefits of entrepreneurship?

Setting one's own hours. Having set pay.

Partnership

Shared financial backing

To use materials that have a copyright or a trademark, one must get permission. Which two things are required to do before legally using the material?

Sign a licensing agreement and pay a licensing fee

What is the difference between small businesses and entrepreneurs?

Small business owners are not always interested in taking on new business opportunities

What is the main drawback of a sole proprietorship?

They have unlimited personal liability.

What must happen before one can use someone else's patent?

They must obtain ownership of the patent.

Ronda owns a food truck where she is known for her hot sauce. Which intellectual property law best protects Ronda's recipe from being stolen or replicated by other competitors?

Trade Secret

An executive summary should briefly explain everything in a business plan in ___ pages.

Two

Network marketers make their money through ____________

commissions

Sole Proprietorship

easy to create, but comes with unlimited liability

Knowing a process has been tested and works well is valuable to companies as they can assume it would work just as successfully in their company. As a result, companies may want to use _______ materials.

trade secret

One value of using _____ material is that they are usually well-recognized, which may help to boost sales.

trademarked