Questions and Answers
What are two advantages of selling digital products?
- Delivery is instantaneous and inexpensive. 2) Not needing physical storage, inventory or additional employees.
What type of transactions did Rose order?
Physical
What is a disadvantage of S corporations?
They have very strict qualification requirements.
In which business life cycle is Dylan?
Signup and view all the answers
What type of business opportunity is Joey a part of?
Signup and view all the answers
Companies may want to use __________ materials based on tested processes.
Signup and view all the answers
What is a for-profit corporation with a lower tax rate?
Signup and view all the answers
What is the legal structure best for international businesses that taxes profits when earned?
Signup and view all the answers
What legal structure is ideal for a single owner seeking low risks?
Signup and view all the answers
What is easy to create but comes with unlimited liability?
Signup and view all the answers
What type of business structure involves shared financial banking?
Signup and view all the answers
What type of corporation has no ownership and pays no US federal taxes?
Signup and view all the answers
What summarizes what one wants to accomplish with a business?
Signup and view all the answers
What determines the size of a market and describes potential customers?
Signup and view all the answers
What provides an overview of the employee and others in a business?
Signup and view all the answers
What includes a budget and profit-loss projections to show investors?
Signup and view all the answers
What is payment for the hours an employee has worked?
Signup and view all the answers
What is a fixed payment amount for each pay period?
Signup and view all the answers
What is a fee paid to an employee for completing a task?
Signup and view all the answers
What is compensation for the number of units an employee produces?
Signup and view all the answers
What is non-cash compensation, including investment vehicles?
Signup and view all the answers
What entails trusting one's self, goals, and progress?
Signup and view all the answers
What involves thinking about planning for the future?
Signup and view all the answers
What describes the way one approaches new ideas and ventures?
Signup and view all the answers
What refers to turning one's ideas into action?
Signup and view all the answers
What involves adapting to change, loss, and disappointment?
Signup and view all the answers
What encompasses tackling goals with courage and perseverance?
Signup and view all the answers
What is the amount of loss one is willing to take in investment decisions?
Signup and view all the answers
What belief emphasizes that one can achieve anything with hard work?
Signup and view all the answers
Study Notes
Digital Products
- Advantages include instantaneous and inexpensive delivery.
- No need for physical storage, inventory, or additional employees.
Transaction Types
- Rose's order of macaroons is categorized as a physical transaction.
S Corporations
- A significant disadvantage includes strict qualification requirements for establishment.
Business Life Cycle
- Dylan is in the "Pivot or Persist" stage, assessing whether to continue or change business strategy.
Franchise
- Joey's restaurant qualifies as a franchise due to high startup costs and selling licensed products.
Trade Secrets
- Companies prefer using tested processes, classified as trade secrets, for predictable outcomes.
S-Corporation
- A for-profit corporation that benefits from lower tax rates and avoids double taxation.
C-Corporation
- Profits are taxed when earned, and shareholders incur additional taxes on dividends. Preferred for international businesses.
Limited Liability Corporation (LLC)
- Allows owners to report profits or losses on personal tax returns, suitable for low-risk single owners.
Sole Proprietorship
- Easy to establish but entails unlimited personal liability for the owner.
Partnership
- Involves shared financial responsibilities within a business setting.
Non-Profit
- Operates without ownership and is exempt from US federal taxes.
Executive Summary
- Details business objectives, products/services, financial outlook, funding needs, goals, and achievements.
Marketing Plan
- Analyzes market size and describes potential customers to develop a tailored marketing strategy.
Organizational Structure
- Provides insight into employees and their roles within the business.
Financial Plan
- Comprises budget, profit/loss projections, cash flow statements, breakeven analysis, and capital requirements for investors.
Employee Compensation
- Hourly Pay: Payment for hours worked.
- Salary: Fixed payment amount for each pay period.
- Commission: Fee for task completion.
- Piece Work: Compensation based on the number of units produced.
Non-Cash Compensation
- Equity benefits include investment vehicles, ownership shares, and restricted stock options.
Personal Development Concepts
- Self Reliance: Trust in oneself, goals, and personal progress.
- Forward Thinking Mentality: Planning for future scenarios.
- Opportunity Recognition: Approach to new ideas and ventures.
- Initiative: Transforming ideas into actionable business strategies.
- Resiliency: Ability to adapt to changes and setbacks.
- Grit: Perseverance and courage in pursuing goals despite challenges.
- Risk Tolerance: Understanding the level of loss one can accept in investments.
- Growth Mindset: Belief in the power of effort to achieve goals.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
These flashcards cover various concepts in business, including advantages of digital products, types of transactions, and the disadvantages of S corporations. Perfect for anyone studying business education or preparing for exams.