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?
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What type of business opportunity is Joey a part of?
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Companies may want to use __________ materials based on tested processes.
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What is a for-profit corporation with a lower tax rate?
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What is the legal structure best for international businesses that taxes profits when earned?
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What legal structure is ideal for a single owner seeking low risks?
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What is easy to create but comes with unlimited liability?
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What type of business structure involves shared financial banking?
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What type of corporation has no ownership and pays no US federal taxes?
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What summarizes what one wants to accomplish with a business?
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What determines the size of a market and describes potential customers?
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What provides an overview of the employee and others in a business?
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What includes a budget and profit-loss projections to show investors?
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What is payment for the hours an employee has worked?
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What is a fixed payment amount for each pay period?
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What is a fee paid to an employee for completing a task?
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What is compensation for the number of units an employee produces?
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What is non-cash compensation, including investment vehicles?
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What entails trusting one's self, goals, and progress?
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What involves thinking about planning for the future?
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What describes the way one approaches new ideas and ventures?
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What refers to turning one's ideas into action?
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What involves adapting to change, loss, and disappointment?
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What encompasses tackling goals with courage and perseverance?
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What is the amount of loss one is willing to take in investment decisions?
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What belief emphasizes that one can achieve anything with hard work?
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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.
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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.
