The story of 5 entrepreneurs…

Business Management

 Define entrepreneurship.  Explain the risks and rewards of entrepreneurship through a SWOT analysis.  Explain the nature of business activities.  Describe the general types of businesses.  Compare the characteristics of different types of business ownership.

 _____________ is the process of starting and managing your own business.  An ____________ is someone who attempts to ___________ and make profits by ___________ of owning and operating their business.

What personality traits, qualities, or skills are needed in order to be a successful entrepreneur?

 ____________  __________  _____________  _________________

________________________ __________

 An organization that produces or distributes a good or service for profit is called a ________.  ______ (the difference between _________ and ______) is the goal of business ownership!

Every business engages in at least three major activities. 1. ___________ making a product or providing a service 2. _________ activities between the business and customers (buying / selling) 3. ________ deals with all of the money matters involved in running a business

 Produce _________ used by other businesses or organizations to make things ◦ Mining coal ◦ Extracting oil ◦ Constructing buildings ◦ Building businesses ◦ Manufacturing airplanes ◦ Assembling televisions ◦ Growing crops / raising livestock

 Sell ________ or _______ to the end consumer  Engaged in marketing (wholesalers and retailers), in finance (banks and investment companies), and providing services (medical offices, fitness centers, hotels)

 _________ Businesses – type of commercial business that use mostly labor to offer _____ products to satisfy consumer ____  ________ – refers to all businesses within a category that do similar work (i.e., the automotive industry)

Service Businesses Industries

o Sole Proprietorship o Partnership o Corporation LLC S-Corporation Nonprofit Corporation Quasi-public Corporation o Organizational Alliances Joint Ventures Cooperatives o Franchise

 Small businesses provide _____ of jobs.  There are _____ million businesses started each year – only the strong survive!  Within the first ______ years, ____ out of every _____ to _____ businesses will close.  About half cease operations within _ to _ years.

 About ____ of all businesses in the United States are sole proprietorships.  A sole proprietorship is a business owned by ______________.  Sole proprietors usually have a special skill by which they can earn a living (i.e. plumbers, contractors, wedding planners, etc.).

 Owner is ____  Owner receives all ________  Personally know employees & customers  ______ all decisions  May ____ necessary _____ & abilities  May lack ________  Owner bears all _____ (unlimited liability)  Business ends upon death of the owner AdvantagesDisadvantages

 A ________ is a business owned by two or more people who share its risks and rewards.  A _____________outlines the rights and responsibilities of each partner.

 Skills & abilities _________  Sources of capital increase ◦ Investment ◦ Credit  Unlimited _______  Disagreement among partners  All partners share _______ ◦ May be held responsible for partner’s ________  Difficulty in _______ from partnership AdvantagesDisadvantages

 Only __ – __ percent of all businesses in the United States are corporations.  Corporations are responsible for __% of all business that is conducted in the United States.

 A corporation is a company that is _________ by a state and operates apart from its owners.  The owner must get a corporate ________ (business license) from the state where the main office will be located.  To raise money, the owners can sell ______ (shares in the company) to stockholders.  The company must have a ______ of ___________ to govern the corporation.

 _________ taxation ◦ Company taxed on _________ ◦ Stockholders ______ on profits  Government regulations  Complex business to run ◦ Stockholders’ records ◦ Charter ___________ AdvantagesDisadvantages  Available sources of _______  Limited ______ of stockholders  Permanency of _________  Ease in _________ ownership

LLC S-corporations Nonprofit corporations Quasi-public corporations

 Also known as ___  Relatively new form of ___________  ________ of a partnership and corporation ◦ Owners protected from _______ liability ◦ Profits / losses pass directly to owners without _______ to the company itself

 One type of ____________  Small business that is ______ like a __________ or _____ proprietorship but has up to __ shareholders

 Does not _______, does not exist to ____________  In the United States, nonprofits provide nearly ___ of the ___.  Examples include: ◦ Loudoun County Public Schools ◦ United Way ◦ Educational Testing Service (the SATs) ◦ Hospitals

 Businesses that are important to society but lack the _______ potential to attract investors  Usually operated by local, state, or federal _________  Government provides __________ support (subsidy)  Government imposes _________ controls  Examples include: ◦ Interstate highways (Massachusetts & PA turnpike … state-owned) ◦ Local water & sewer systems (Loudoun Water) ◦ Los Angeles County Museum of Art

Joint Venture Cooperatives

 Agreement among two or more businesses to work together to provide a _________________  Each business shares the ______ of doing business as well as the ______  Many web-based companies rely extensively on _________________.  Also commonly seen when businesses expand into _________ countries

 Business owned and operated by its user-members for the purpose of supplying themselves with _____ and ________  Operates similarly to a corporation (stockholders, charter)  Provides members with ____ and ______ advantages  Popular in agriculture for buying & selling crops

 A ________ is a legal agreement to use the name and sell the products of a parent company in a designated geographic area.  ___________: person who buys the rights to operate the business  ____________: recognized company that allows independent owners to use their name  The franchisee pays the franchisor an annual fee and a share of the profits.

 Owner receives thorough business _____  Uses a _______ management system  Owner is guaranteed a certain ________ area  Usually widely recognized _______  _____ initial cost  Owner has to follow _____ rules and regulations  Judged by performance of ______ AdvantagesDisadvantages

 Many businesses start as one form of business ownership, but move into other forms later.  Example: Ben & Jerry’s started as a partnership, became a Subchapter S Corporation, and then eventually became the corporation we know today.

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