Podcast
Questions and Answers
What is the main difference between a sole proprietorship and a partnership?
What is the main difference between a sole proprietorship and a partnership?
Which factor is NOT typically considered when choosing a business location?
Which factor is NOT typically considered when choosing a business location?
What does a franchise business model involve?
What does a franchise business model involve?
In a cooperative business, who typically owns the business?
In a cooperative business, who typically owns the business?
Signup and view all the answers
What does it mean for a corporation to be considered an artificial 'person'?
What does it mean for a corporation to be considered an artificial 'person'?
Signup and view all the answers
What is a key consideration when placing a proposed business in a strategic location?
What is a key consideration when placing a proposed business in a strategic location?
Signup and view all the answers
What information should be included in the 'Funding Requirement and Source' section of a business plan?
What information should be included in the 'Funding Requirement and Source' section of a business plan?
Signup and view all the answers
Why is it important for the name of the owner to be properly stated in a business plan?
Why is it important for the name of the owner to be properly stated in a business plan?
Signup and view all the answers
What distinguishes a corporation from other forms of ownership like sole proprietorship and partnership?
What distinguishes a corporation from other forms of ownership like sole proprietorship and partnership?
Signup and view all the answers
What role does ownership play in entrepreneurship?
What role does ownership play in entrepreneurship?
Signup and view all the answers
Study Notes
Sole Proprietorship and Partnership
- Sole proprietorship: Owned and run by one person
- Partnership: Owned and run by two or more individuals
- Key Difference: A sole proprietorship has a single owner, while a partnership has multiple owners who share responsibility and profits.
Choosing a Business Location
- Factors considered: Accessibility, visibility, customer traffic, resources, competition, and regulations
- Factor NOT considered: Owner's personal preference unrelated to business needs (usually)
Franchise Business Model
- Involves: A franchisor granting a licensee (franchisee) the right to operate a business under a specific brand
- Key elements: Pre-defined business model, training, marketing support, and ongoing guidance provided by the franchisor
Cooperative Business
- Ownership: Members of the cooperative jointly own and manage the business
- Profit sharing: Profits are distributed among member-owners based on their contributions and usage
Corporation as an Artificial 'Person'
- Legal status: Corporations are separate legal entities, distinct from their owners
- Implications: They can sue and be sued, own property, and enter into contracts just like individuals
Strategic Business Location
- Key consideration: Proximity to target customers, suppliers, and transportation infrastructure
- Example: A bakery might choose a location near residential areas with high foot traffic
Business Plan: Funding Requirement and Source
- Required information: Total funding needed, sources of financing (loans, investments, etc.), breakdown of expenses, and repayment plan
Importance of Owner's Name in Business Plan
- Legal implications: Properly stating the owner's name establishes legal responsibility and ownership
- Transparency and credibility: It demonstrates transparency and professionalism to potential investors and stakeholders
Corporation vs. Other Business Structures
- Distinguishing feature: Limited liability for owners; shareholders are not personally liable for the corporation's debts
Ownership in Entrepreneurship
- Foundation of entrepreneurship: Ownership provides control and motivates entrepreneurs to develop and grow their businesses
- Types of ownership: Sole proprietorship, partnership, corporation, cooperative, franchise, etc.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Prepare for your entrepreneurship midterm with this comprehensive lesson outline covering topics like Introduction to Entrepreneurship, Business Plan, Target Market, Marketing Mix, and more. Get ready to ace your exam!
