Forms of Business (Entrepreneurship)

Forms of Business (Entrepreneurship)

Mrs. Debbie Sweat

Entrepreneur

• Person who organizes, manages, and takes on the risks of a business

Entrepreneurship

• Process of starting, organizing, managing, and assuming the responsibility for a business

Common Business Types

• Business to Business (B2B) - Cisco

• Business to Consumer (B2C) - Amazon

• Business to Government (B2G)

• Consumer to Consumer (C2C) - Ebay, Facebook Market

Enterprise

• Another name for a business or company

Home-Based Business

• Business or Enterprise

• Sells product or service

• Primary facility in residence of owner

Multiple Choice

What type of business would Etsy be considered?

• B2B

• B2G

• B2C

• C2C

Multiple Choice

Amazon and Netflix would be considered what types of business?

• B2B

• B2C

• B2G

• C2C

Bartering

• Exchanging goods & services

• Do NOT use money

Business Structure

• Framework of your business

• Sole Proprietorship

• Partnership

• Corporation

Crowdsourcing

• Social media process

• Employee users to participate

• Designing or redesigning product/service

E-Commerce

• Buying and selling of products and services

• Electronic medium

Online Auctions

• E-commerce

• Shoppers purchase products through online bidding

• E-bay

Brick-and-Mortar Business

• Traditional businesses

• Actual store in which trade or retail occurs

• Does NOT exist solely on the Internet

Multiple Choice

If a TV station offers free commercials to a pest control company in exchange for service, this is considered?

• Bartering

• Bothering

• Benefitting

• Begging

Multiple Choice

Lego wants to create a new Lego design. If Lego sets up a platform for users to submit new design ideas, Lego is:

• Hiring

• Phishing

• Crowdsourcing

• Advertising

Multiple Choice

The store you go into on Killian Road to buy goods is considered what type of store?

• Service Mall

• Brick-and-Mortar Store

• Shopping Mall

• Building-and-Service Store

Ecopreneur

• Develops & markets environmentally-friendly products

• Offers services that work to improve the environment

Green Entrepreneurship

• Business activities that avoid harming environment

• Business activities that help to protect environment

Social Entrepreneur

• Pursues initiatives and opportunities

• Mobilizes resources to address social problems and needs

• Wants to improve society and well-being through creative solutions

Intrapreneur

• Creative person; takes direct responsibility

• Turns idea into a profitable finished product

• Takes risks and is innovative

• NO financial risks

• Business takes financial risk

Invention

• New product, system or process

• Never existed before

• Created by study and experimentation

Multiple Choice

If I sell my car through Facebook Marketplace, I am conducting what type of transaction?

• Advertising

• Commercial Selling

• Crowdsourcing

• E-Commerce

Multiple Choice

If I am concerned about the environment and I create a solution to treat well water, I am considered a/an:

• Intrapreneur

• Extrapreneur

• Ecopreneur

• Inventapreneur

Multiple Choice

TOMS giving shoes to poor communities every time someone buys a pair of shoes is considered to be a/an:

• Intrapreneur

• Social Entrepreneur

• Inventor

• Reactive Entrepreneur

Multiple Choice

If I work for Waffle House and I create a new oven system that makes my job easier, I am considered to be a/an:

• Entrepreneur

• Intrapreneur

• Green Entrepreneur

• Social Entrepreneur

Corporation

• C Corp most common

• Separate legal entity

• Owned by shareholders/stockholders

Distinct Characteristics of Corporations

• Legal existence - can buy, sell, own property, enter into a contract

• Limited Liability - liable only up to resources of the firm

• Continuity of existence - lives beyond life of owners, ownership can be gifted or sold

Advantages of Corporations

• Unlimited life

• Easy transfer of ownership

• Limited liability

• Ease in raising capital

• Best for conducting international business

Disadvantages of Corporations

• Double Taxation

• Difficult to set up

• Separation of ownership and management

S Corporation

• For small businesses (S)

• Taxed as sole proprietorship or partnership

• Restrictions on number of shareholders

• Limited liability

S Corporation Advantages

• Limited liability of owners

• Avoids double taxation

• Ability to continue in perpetuity (indefinitely long period of time)

• Easy to transfer ownership

Nonprofit Corporation

• Special type of corporation

• Pays no taxes

• Does NOT exist to make a profit

• Churches, Public Schools, Research Institutions, etc.

Partnership

• Owned by two or more persons

• Agreement on division of responsibilities and profits

Partnership Advantages

• More capital

• Workload shared

• Losses shared

• Easy to form

Partnership Disadvantages

• Unlimited liability

• Dissolves when one partner dies or wishes to sell

• Difficult to transfer ownership

Sole Proprietorship

• Owned and managed by a single individual

• Simplest, oldest form of business ownership

Sole Proprietorship Advantages

• Easiest to start

• Least regulated

• Single owner keeps all profits

• Taxed once as personal income

Sole Proprietorship Disadvantages

• Unlimited liability

• Limited to life of the owner

• Income instability

• Difficult to sell ownership interest

• Single owner responsible for all decisions

Limited Liability Company (LLC)

• US business structure

• Limited personal liability feature of corporation

• Single taxation feature of sole proprietorship or partnership

Multiple Choice

Apple is considered a legal entity and can enter into sales contracts with stores to sell iPhones. Apple is considered to be a/an:

• Corporation

• Franchise

• Sole Proprietorship

• Partnership

Multiple Choice

If my brother and I own a restaurant and we split the profits and responsibilities equally, we have what type of business structure?

• Corporation

• S Corporation

• Partnership

• Sole Proprietorship

Multiple Choice

Blythewood Hardware is owned by one person. What type of business structure is Blythewood Hardware?

• Sole Proprietorship

• Partnership

• Family Owned Business

• Corporation

Ways to Enter into Business

• Start a new business

• Buy an existing business

• Buy a franchise

• Take over a family business

New Business

• Start-up entity

• Developed to profit financially

• Started from scratch

Existing Business

• Alternative to starting from scratch

• Buying or purchasing a business already in place

Existing Business Advantages

• Proven success

• Already has customers

• Networks already established

Existing Business Disadvantages

• Usually expensive to buy

• Seller's personality may be reason for success

• Major improvements or changes may be needed

Franchise

• Privilege granted to make or market good or service

• Patented process or trademark name

Franchise Terms

• Franchisor - founding person(s), company that allows right to run a location of their business

• Franchisee - one who purchases a franchise

• Franchise Fee - one-time fee paid to open new franchise

• Royalty Fee - regular, ongoing payments to franchisor based on sales (weekly, monthly, quarterly)

Franchise Advantages

• Proven product

• Easy to start

• Rely on good name and reputation of company

• Good training to run business

Franchise Disadvantages

• NO freedom of design, new products, or creativity

• Negative occurrence at another location could hurt your business

• Share profits

Family Owned Business

• Two or more members of same family own and/or operate business

• May be owned by more than one family

Family Owned Business Pro/Con

• Pro - continuing family tradition

• Con - you might not WANT to run business

Multiple Choice

Chick fil A, McDonalds, and KFC are examples of:

• Family Owned Businesses

• New Businesses

• Franchises

• Existing Businesses

Multiple Choice

If your grandfather was a carpenter and started Campbell Construction and he passed this business to your father, who passed the business to you, what type of business did you take over?

• Existing Business

• New Business

• Franchise

• Family Owned Business

Multiple Choice

If I am willing to be flexible in business and I learn from my mistakes, I am:

• Couragous

• Determined

• Adaptable

• Empathetic

Multiple Select

Check all the characteristics of a good entrepreneur.

• Hard-headed

• Creative

• Determined

• Aggressive

• Empathetic

Multiple Choice

If I take risks in spite of possible losses I am:

• Courageous

• Adaptable

• Determined

• Aggressive

Multiple Choice

Inventing new ways of doing things

• Adaptable

• Tenacious

• Courage

• Creativity

Multiple Choice

An entrepreneur that refuses to quit and is not easily discouraged is displaying what characteristic?

• Adaptability

• Creativity

• Determination

• Tenacious

Multiple Choice

Accepts that goals are NOT reached overnight

• Enthusiastic

• Flexibility

• Responsible

• Patience

Multiple Choice

Passionate and has a positive attitude

• Patience

• Autonomy

• Enthusiasm

• Determine

Multiple Choice

Trustworthy and reliable

• Responsible

• Tenacious

• Enthusiasm

• Patience

Multiple Choice

When you exercise the freedom to make your own rules, hire your own employees and set your own schedule, what characteristic is this?

• Determination

• Empathy

• Autonomy

• Responsibility

Multiple Choice

I've been in your shoes and I know how you feel are two ways of showing what characteristic?

• Autonomy

• Empathy

• Flexibility

• Patience

Open Ended

What is ONE benefit of being an entrepreneur?

Open Ended

What is ONE Risk of being an entrepreneur?