Chapters 5 & 6 Flashcards
(32 cards)
Business plan
Your plan on how to get your business started
Entrepreneur
A person who recognizes business opportunity and organizes, manages, and assumes the risks of a business enterprise
Small business
An independently owned business that usually has the owner as its manager
Profit
Money left over free a business has paid all costs of producing its goods and services
What part of a business is the owner responsible for?
All of it
List some disadvantages of being an entrepreneur
- total responsibility of the business
- long hours
- financial risks
Why do some small businesses fail?
They don’t get enough profit and they end up spending more then they are actually selling
A small business employs more ores than 500 people?
Less
Most businesses in the US are what?
Small businesses
How many out of five businesses fail within the first five years?
Four
What percentage are successful businesses?
20%
How long does it take to prepare a good business plan?
More than 5 months
Sale proprietorship
Business owned by only one person
Partnership
Business owned by many people but treated by law as one person
Corporation
Business owned by many people but treated by law as one person
Stocks
Shares of ownership in your corporation
Limited liability
If your company loses money, the stockholders lose only what they invested
Nonprofit organization
Type I business that focuses on providing a service rather than making a profit
Cooperative
An organization owned and operated by its members for the purpose of saving money on the purchase of certain goods and services
Processor
Change raw materials into more finished products
Retailer
Purchases goods from a wholesaler and resells them to the consumer or the final buyer of the goods
Intermediary
Business that moves goods from one business to another
Service industry
A business that does work for a customer, and occasionally provides goods, but is not involved in manufacturing
Wholesaler
Distributes goods
