Module 6: Launching your Startup

Select the key advantages as they apply to: (Sole) Proprietorship

• All decisions made by 1, few restrictions, low startup costs, no additional federal taxes, all profit kept by 1

• Low failure rate, business assistance, buying power, name recognition, potential for large profits

• Owners can deduct many losses on personal returns; losses share between partners

• Protected from liability, easy startup, no additional federal taxes

Select the key advantages as they apply to: General Partnership:

• Good for raising money; Gen partners get money but maintain authority; Ltd partners can leave any time

• 1. Protected from liability, easy startup, no additional federal taxes

• 1. Owners can deduct many losses on personal returns; losses share between partners

• 1. Low failure rate, business assistance, buying power, name recognition, potential for large profits

1. Select the key advantages as they apply to: Limited Partnership:

• 1. Owners can deduct many losses on personal returns; losses share between partners

• 1. Stocks provide funding options; many tax deductions; no shareholder liability

• 2. Protected from liability, easy startup, no additional federal taxes

• 2. Good for raising money; Gen partners get money but maintain authority; Ltd partners can leave any time

1. Select the key advantages as they apply to: C-Corp (default corporation):

• 1. All decisions made by 1, few restrictions, low startup costs, no additional federal taxes, all profit kept by 1

• 1. Owners can deduct many losses on personal returns; losses share between partners

• 1. Low failure rate, business assistance, buying power, name recognition, potential for large profits

• 1.  

  2. Stocks provide funding options; many tax deductions; no shareholder liability

1. Select the key advantages as they apply to: S-Corp:

• 1. Serve the common good, exempt from taxes

• 1. No corporate taxation; no double taxation, no shareholder liability

• 1. Owners can deduct many losses on personal returns; losses share between partners

• 1. Protected from liability, easy startup, no additional federal taxes

1. Select the key advantages as they apply to: LLC

• 1. No corporate taxation; no double taxation, no shareholder liability

• 1. Owners can deduct many losses on personal returns; losses share between partners

• 1. Protected from liability, easy startup, no additional federal taxes

• 1. Low failure rate, business assistance

1. Select the key advantages as they apply to: Co-op

4.  

• 1. Employees only taxed on income

• 1. Low failure rate, business assistance, buying power, name recognition, potential for large profits

• 1. Owners can deduct many losses on personal returns; losses share between partners

• 1. Protected from liability, easy startup, no additional federal taxes 

1. Select the key advantages as they apply to: Franchise

• 1. All decisions made by 1, few restrictions, low startup costs, no additional federal taxes, all profit kept by 1

• 1. Low failure rate, business assistance, buying power, name recognition, potential for large profits

• 1. Employees only taxed on income

• 1. Owners can deduct many losses on personal returns; losses share between partners

1. What is the primary purpose of the SWOT Analysis?

• 1. To evaluate 4 areas important to a businesses success

• 1. To evaluate the competition

• 1. To decide whether or not to open the new business

• 1. To decide if you should change locations

1. What is the primary purpose of the PESTEL Analysis?

• 1. To take inventory of goods

• 1. To see if you are paying your employees enough

• 1. To examine external variables that affect your business model

• 1. To recruit new key partners