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