ESB V2 Unit 1

The owners license their operations,
products, or services, branding and

knowledge for a franchise fee.

This arrangement requires that a

previously agreed upon amount in sales
revenue be paid to the franchise owner.

Higher up front costs, but are less risky as

you are also purchasing tested and true

operational processes, products, and

services, and well-recognized branding.

Continued direction, guidance, and
training provided by the franchise

owners.

Multiple Choice

An intangible service or skill that is performed.

• Product

• Service

Provided with a special tax advantage that allows
the company to pass its income, losses, deductions,
and credits through its shareholders, which results
in low taxation.

For- profit corporation

Offers similar liability protections as a C
Corporation

One disadvantage is that very strict qualification
requirements must be met to become an S
Corporation

Qualification Requirements

• No more than 100

shareholders

• Only one class of stock

• Strict stipulations on

who is allowed to be a
shareholder

Multiple Choice

A type of business structure with a single owner. The business is not shielded from any amount of liability.

• LLC

• Non Profit

• Sole Proprietorship

• Franchisee

Multiple Choice

A business structure with a special tax advantage that allows the company to pass its income, losses, deductions, and credits through its shareholders.

• LLC

• Non Profit

• Sole Proprietorship

• S Corporation

Multiple Choice

A business with pass-through taxation where owners pay taxes on the company's profit and losses through their personal taxes. No risk of personal law suit.

• LLC

• Non Profit

• Sole Proprietorship

• S Corporation

Multiple Choice

Holds a leadership role within a business and oversees a business's operations and resources and makes the major decisions for the company.

• CEO

• Stakeholder

• Stockholder

• COO

Multiple Choice

Holds a leadership role within a business and oversees a company's finances.

• CEO

• Stakeholder

• Stockholder

• CFO

Multiple Choice

An individual with an interest in a business.

• Stakeholder

• Customer

Multiple Choice

Holds a leadership role within a business and is responsible for overseeing the day-to-day administrative and operational functions of a business.

• CEO

• CFO

• Employee

• COO

Multiple Choice

An individual that owns at least one share in a corporation's stock.

• Shareholder

• Stakeholder

• Customer

“Boss I need a raise – there are three companies after me right now.”

“Really? Which ones?”

“Gas, electric, and water.”

Multiple Choice

A type of compensation provided for the amount of work produced.

• Piece Work

• Salary

• Hourly

Multiple Choice

A fixed payment amount provided to a full-time employee.

• Equity

• Hourly

• Salary

• Bonus

Multiple Choice

A fee paid to an employee for completing a task.

• Salary

• Commission

• Shares

Multiple Choice

A monetary amount given to employees in return for their work.

• Benefits

• Compensation

• Stocks

Multiple Choice

Non-cash compensations offered to employees in place of or in addition to a lower salary.

• Bonus

• Salary

• Equity

Multiple Choice

Business Life Cycle Stages

Stage 1 - When a business begins

• Existence

• Survival

• Success Stage

• Take-Off Stage

• Resourse Maturity Stage

Multiple Choice

Business Life Cycle Stages

Stage 4 - When an owner decides whether to continue growing the business and how to finance growth.

• Pivot or Persist

• Survival

• Exit Plan Stage

• Take-Off Stage

• Resourse Maturity Stage

Multiple Choice

Business Life Cycle Stages

Stage 2 - Income and customers begin to grow

• Existence

• Survival

• Success Stage

• Take-Off Stage

• Resourse Maturity Stage

​https://www.youtube.com/watch?v=TsSsGSFxS-Q&list=PLIAAUR8t0Ozc6Bylby3eJXYzqGAFjouK8&index=34

Multiple Choice

A document that addresses the concept, customers, and capital for a business.

• Lean Canvas

• Business Plan

• Executive Summary

Multiple Choice

Should explain everything in a business plan in two pages

• Lean Canvas

• Business Plan

• Executive Summary

Multiple Choice

A one page document covering problems, solutions, and key details of a business plan, costs and revenue.

• Business Plan

• Executive

• Summary

• Pitch Deck

• Lean Canvas

Why did the electrician close business once a week?  

Because business was light.