Entrepreneurship and Business Planning

Entrepreneurship

Business Planning

• A written document outlining business goals, strategies, and financial projections
• Essential for entrepreneurs to clarify business ideas, identify opportunities, and make informed decisions
• Typically includes:
  • Executive summary
  • Company description
  • Market analysis
  • Product/service description
  • Marketing and sales strategy
  • Financial projections (income statement, balance sheet, cash flow statement)

Franchise Ownership

• A business model where an individual (franchisee) purchases the right to operate a business using the trademark, products, and business system of another company (franchisor)
• Advantages:
  • Established brand recognition
  • Ongoing support and training
  • Access to proven business systems and operations
• Disadvantages:
  • Initial investment and ongoing fees
  • Limited control over business operations
  • Dependence on the franchisor's reputation and success

Business Structures

Sole Proprietorship

• A business owned and operated by one individual
• Advantages:
  • Easy to establish and maintain
  • Complete control over business operations
  • Minimal legal and regulatory requirements
• Disadvantages:
  • Unlimited personal liability
  • Limited access to capital and resources

Partnership

• A business owned and operated by two or more individuals
• Types:
  • General partnership: all partners have equal responsibility and liability
  • Limited partnership: limited partners have limited liability and no management control
• Advantages:
  • Shared decision-making and risk
  • Access to diverse skills and expertise
  • Flexibility in management and operation
• Disadvantages:
  • Unlimited personal liability (general partners)
  • Potential for conflicts and disagreements

Corporation

• A separate legal entity owned by shareholders
• Advantages:
  • Limited liability for shareholders
  • Access to capital through stock issuance
  • Perpetual existence
• Disadvantages:
  • Complex and costly to establish and maintain
  • Double taxation (corporate and shareholder taxes)

Legal Concepts

Mediation

• A dispute resolution process where a neutral third party facilitates negotiation between parties
• Advantages:
  • Confidential and informal
  • Flexible and adaptable
  • Cost-effective and efficient

Misdemeanor

• A criminal offense punishable by fine or imprisonment for less than one year
• Examples: traffic violations, disorderly conduct, petty theft

Negligence

• Failure to exercise the care that a reasonably prudent person would exercise in a similar situation
• Elements:
  • Duty of care
  • Breach of duty
  • Causation
  • Damages

Plaintiff

• A person or entity that brings a lawsuit against another party
• Responsibilities:
  • Filing a complaint
  • Proving the case
  • Seeking damages or relief

Tort

• A civil wrong or injury committed by one party against another
• Examples: negligence, intentional torts, strict liability

Undue Influence

• Unfair persuasion or pressure exerted by one party over another, often in contract or business dealings
• Elements:
  • Vulnerability of the influenced party
  • Unfair persuasion or pressure
  • Unjust result

Verdict

• A jury's decision in a trial, usually involving a finding of guilt or innocence
• Types:
  • Guilty verdict: defendant is found guilty of the charged offense
  • Not guilty verdict: defendant is acquitted of the charged offense
  • Hung jury verdict: jury is unable to reach a unanimous decision

Business Planning

• A written document outlining business goals, strategies, and financial projections
• Essential for entrepreneurs to clarify business ideas, identify opportunities, and make informed decisions
• Typically includes: executive summary, company description, market analysis, product/service description, marketing and sales strategy, and financial projections

Franchise Ownership

• A business model where an individual (franchisee) purchases the right to operate a business using the trademark, products, and business system of another company (franchisor)
• Advantages: established brand recognition, ongoing support and training, and access to proven business systems and operations
• Disadvantages: initial investment and ongoing fees, limited control over business operations, and dependence on the franchisor's reputation and success

Business Structures

Sole Proprietorship

• A business owned and operated by one individual
• Advantages: easy to establish and maintain, complete control over business operations, and minimal legal and regulatory requirements
• Disadvantages: unlimited personal liability, limited access to capital and resources

Partnership

• A business owned and operated by two or more individuals
• Types: general partnership (all partners have equal responsibility and liability), limited partnership (limited partners have limited liability and no management control)
• Advantages: shared decision-making and risk, access to diverse skills and expertise, and flexibility in management and operation
• Disadvantages: unlimited personal liability (general partners), potential for conflicts and disagreements

Corporation

• A separate legal entity owned by shareholders
• Advantages: limited liability for shareholders, access to capital through stock issuance, and perpetual existence
• Disadvantages: complex and costly to establish and maintain, double taxation (corporate and shareholder taxes)

Legal Concepts

Mediation

• A dispute resolution process where a neutral third party facilitates negotiation between parties
• Advantages: confidential and informal, flexible and adaptable, and cost-effective and efficient

Misdemeanor

• A criminal offense punishable by fine or imprisonment for less than one year
• Examples: traffic violations, disorderly conduct, petty theft

Negligence

• Failure to exercise the care that a reasonably prudent person would exercise in a similar situation
• Elements: duty of care, breach of duty, causation, and damages

Plaintiff

• A person or entity that brings a lawsuit against another party
• Responsibilities: filing a complaint, proving the case, and seeking damages or relief

Tort

• A civil wrong or injury committed by one party against another
• Examples: negligence, intentional torts, strict liability

Undue Influence

• Unfair persuasion or pressure exerted by one party over another, often in contract or business dealings
• Elements: vulnerability of the influenced party, unfair persuasion or pressure, and unjust result

Verdict

• A jury's decision in a trial, usually involving a finding of guilt or innocence
• Types: guilty verdict, not guilty verdict, hung jury verdict

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