Domain 1 Lesson 1 Teacher Workbook PDF

Domain 1 Lesson 1 6 | Domain 1 Lesson 1 Entrepreneurship and Small Business V.2 Project Workbook, First Edition Fill-in-the-Blanks Instructions: While watching Domain 1 Lesson 1, fill in the missing words according to the information presented by the instructor. [References are found in the brac...

Domain 1 Lesson 1 6 | Domain 1 Lesson 1 Entrepreneurship and Small Business V.2 Project Workbook, First Edition Fill-in-the-Blanks Instructions: While watching Domain 1 Lesson 1, fill in the missing words according to the information presented by the instructor. [References are found in the brackets.] 1. The key objective of a small business owner is to generate profits. [Entrepreneurship and Small Business] 2. Entrepreneurs are willing to take on new opportunities and unknown risks to grow their businesses rapidly. [Entrepreneurship and Small Business] 3. Tangible items that require pick-up or delivery are physical products. [Classify Types of Businesses] 4. When a customer purchases an item from a business, it is a business-to-consumer transaction. [Classify Types of Businesses] 5. S corporations are for-profit corporations with limited liability. [Business Legal Structures] 6. C corporations are ideal for international businesses. [Business Legal Structures] 7. The Chief Operating Officer oversees daily operational and administrative functions. [Business Roles and Responsibilities] 8. A stockholder votes on the management of a company. [Business Roles and Responsibilities] 9. Salary employees are paid a fixed amount each pay period. [Business Compensation Structures] 10. Businesses can compensate employees for work they produce when being paid by piece work. [Business Compensation Structures] 11. Businesses can offer equity in addition to a lower salary. [Business Compensation Structures] 12. During the survival stage of the business life cycle, a company is regularly taking on new customers and starting to generate a consistent income. [Business Life Cycle Stages] 13. The owner may decide to sell their ownership in the company during the exit plan stage. [Business Life Cycle Stages] 14. The five elements of the design thinking process are: empathize, define, ideate, prototype , and test. [The Design Thinking Process] 15. Empathy allows one to see and experience a customer's perspective. [The Design Thinking Process] 16. The design team creates multiple inexpensive versions of a product, known as Minimum Viable Products. [The Design Thinking Process] 7 | Domain 1 Lesson 1 Entrepreneurship and Small Business V.2 Project Workbook, First Edition Small Business Types Project Details Project file Small business owners and entrepreneurs are similar but have some key N/A differences. Both invest time and money into a small business. A small business Estimated completion time owner focuses on generating profits and deals with known risks. Entrepreneurs 5 minutes tend to grow fast and take on new opportunities and unknown risks. A franchise is a licensed business that has established operations, products or services, and Video reference branding. This business requires more money upfront but has less risk involved. Domain 1 Topic: Entrepreneurship and Small Businesses sell products and services. A product is a physical item that one Business Ownership holds, such as clothing, toys, and food. A service is intangible. Car detailing, Subtopic: Entrepreneurship and Small Business; Classify Types of computer repairs, and lawn maintenance are all services. Services need some Businesses type of training to perform. Products and services are sold in physical stores or using e-commerce. There are shipping costs associated with physical products. Objectives covered Digital products are instantly available, though it can be challenging to show 1 Entrepreneurial and Small Business Concepts value. When a customer makes a purchase from a business, it is a business-to- 1.1 Identify the foundational consumer (B2C) transaction. When a business makes a purchase from another concepts of entrepreneurship and business, it is a business-to-business (B2B) transaction. small business ownership 1.1.1 Define entrepreneurship and Purpose small business 1.1.2 Classify types of businesses Upon completing this project, you will better understand small businesses and their products and services. Notes for the teacher Review the differences between a small Steps for Completion business owner, an entrepreneur, and a franchise. 1. Name one benefit of a franchise. a. Answers may vary but could include less risk involved, tested operational processes, or recognized brands 2. Label the items as either a product or a service. Use P for product and S for service. a. P Muffins b. S AC repairs c. P Toilet paper d. P Jewelry e. S Web designs f. P Couch g. S Guitar lessons 8 | Domain 1 Lesson 1 Entrepreneurship and Small Business V.2 Project Workbook, First Edition Legal Structures Project Details Project file There are various legal structures to choose from when creating a business. An S N/A corporation and C corporation have specific tax advantages and limited liability. Estimated completion time They have shareholders, a lower tax rate, and follow strict qualifications to 5 minutes create. A limited liability company (LLC) has a personal tax rate. They are not. A sole proprietorship or partnership is Video reference responsible for all debt and they are easy to create. The last legal structure, non- Domain 1 Topic: Entrepreneurship and Small profit organizations, have specific tax exemptions. Business Ownership Subtopic: Business Legal Purpose Structures Upon completing this project, you will better understand the legal structures Objectives covered available to businesses. 1 Entrepreneurial and Small Business Concepts Steps for Completion 1.1 Identify the foundational concepts of entrepreneurship and 1. Match the following characteristics to the appropriate legal structure. small business ownership 1.1.3 Identify various legal S corporation Sole proprietorship structures of a business Partnership LLC Non-profit C corporation Notes for the teacher Review the various legal structures with students. a. Non profit No ownership, no US federal taxes b. C corporation Best for international business even with being double-taxed c. Sole proprietorship Easy to create but comes with unlimited liability d. S corporation Lower tax rate that prevents the company from being double-taxed e. LLC Ideal for a single owner seeking low risk f. Partnership Shared financial backing 9 | Domain 1 Lesson 1 Entrepreneurship and Small Business V.2 Project Workbook, First Edition Roles and Compensation Project Details Project file There are many roles and responsibilities within a business. In a larger company, N/A the roles are spread among multiple people. In a small business, the roles may Estimated completion time be filled by a few people. Some common roles are the Chief Executive Officer 5 minutes (CEO), Chief Financial Officer (CFO), and Chief Operations Officer (COO). These are the highest-ranking employees and make the major decisions for a Video reference company. The owner or founder is the only role that is not interchangeable. Domain 1 Topic: Entrepreneurship and Small Stakeholders are individuals or groups that have an interest in the success of a Business Ownership company. They might serve on the board of directors. Stockholders have a Subtopic: Business Roles and vested interest in a company, meaning they pay for part of the ownership. Responsibilities; Business Employees are given specific roles or tasks to complete. Each role is important Compensation Structures to the success of a company. Objectives covered No matter the role, all employees receive compensation. There are many forms 1 Entrepreneurial and Small Business Concepts of compensation, but the most common are hourly and salary. A few others of 1.1 Identify the foundational note are commission, piece work, and equity. concepts of entrepreneurship and small business ownership Purpose 1.1.4 Identify roles and responsibilities within a business Upon completing this project, you will better understand the roles in a business. 1.1.5 Define business compensation structures Steps for Completion Notes for the teacher 1. Match the responsibility with the corresponding role in a business. Review roles, responsibilities, and compensation in greater detail if time CEO Founder permits. Stakeholder COO CFO Stockholder a. Founder Creates the company b. CFO Oversees company finances c. Stockholder Owns stock in the company d. CEO Reports to the board of directors e. COO Oversees daily operational and administrative functions f. Stakeholder Has a vested interest in the success of the company 2. Match the business compensation type with the corresponding definition Hourly Commission Salary Equity a. Equity Non-cash compensation b. Hourly Set rate of pay for hours worked c. Commission Usually found in sales roles d. Salary Set amount of pay in a given period 10 | Domain 1 Lesson 1 Entrepreneurship and Small Business V.2 Project Workbook, First Edition Business Life Cycle Stages Project Details Project file There are seven stages in a business life cycle. Each stage represents a different N/A phase of growth and expansion for a business. The first stage is existence, when Estimated completion time a business begins. After this initial period is the survival stage. In this stage, 5 minutes income and customers begin to grow. Once a business is economically healthy, it moves to the success stage. In the take-off stage, an owner decides whether Video reference to continue growing the business or to sell the business. During the resource Domain 1 Topic: Entrepreneurship and Small maturity stage, the owner can separate financially and operationally from a Business Ownership business. Pivot or persist is next as an owner decides if they will continue to Subtopic: Business Life Cycle grow the business into a large company or pivot to a new project. Finally, an Stages owner may choose to sell their company in the exit plan stage. Objectives covered Purpose 1 Entrepreneurial and Small Business Concepts Upon completing this project, you will better understand the stages of a 1.1 Identify the foundational business life cycle. concepts of entrepreneurship and small business ownership 1.1.6 Define business life cycle Steps for Completion stages 1. List the correct order of the business life cycle stages: Notes for the teacher Review the business life cycles stages a. Existence with students. b. Survival c. Success d. Take off e. Resource maturity f. Pivot or persist g. Exit plan 2. Michael owns a small but profitable tech company. He has been approached by a larger company that wants to purchase his business. In which business life cycle stage is Michael? a. Exit plan 3. Bill just started a new graphic design business. He is advertising online and trying to gain customers. He just finished working with his first client. In which business life cycle stage is Bill? a. Existence 4. Stephanie started a new flower shop last year. She has a good customer base and money coming in. In which business life cycle stage is Stephanie? a. Survival 11 | Domain 1 Lesson 1 Entrepreneurship and Small Business V.2 Project Workbook, First Edition The Design Thinking Process Project Details Project file As a business owner, it is important to keep the needs of customers in mind. N/A The design thinking process has five elements for a design team to develop Estimated completion time products that meet customer need. These elements are: empathize, define, 5 minutes ideate, prototype, and test. The stages typically flow in this order, but the team can return to previous stages as needed. Identifying the needs of customers is Video reference the first stage. Next, the team identifies and defines any problems customers are Domain 1 Topic: Entrepreneurship and Small facing. The team creates solutions to the problems in the ideation stage. The Business Ownership design team will create prototypes to test the product. In the final stage, the Subtopic: The Design Thinking design team refines the final product. Process Purpose Objectives covered 1 Entrepreneurial and Small Business Upon completing this project, you will better understand the design thinking Concepts process. 1.1 Identify the foundational concepts of entrepreneurship and Steps for Completion small business ownership 1.1.7 Identify elements of the 1. List the correct order of the design thinking process. design thinking process a. Empathize Notes for the teacher Review the design thinking process with b. Define students. c. Ideate d. Prototype e. Test 2. During which stage of the design thinking process will the design team create multiple inexpensive product versions? a. Prototype 3. During which stage of the design thinking process is a problem statement formed? a. Define 4. Which stage of the design thinking process involves learning about customers' challenges? a. Empathize 12 | Domain 1 Lesson 1 Entrepreneurship and Small Business V.2 Project Workbook, First Edition