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WorksheetsEmpowering Entrepreneurs Sem 1 Review
Total questions: 76
Worksheet time: 45mins
Common entrepreneurial traits
Creativity
Ambition
Independence
Risk-taking
Manufacturing
is producing (making) the items that are eventually sold.
is selling items in bulk to individuals or businesses, who then resell them to consumers.
is selling items in relatively small amounts directly to customers.
is selling an intangible service Into a good), which is often consumed when it is purchased.
Wholesaling
is producing (making) the items that are eventually sold.
is selling items in bulk to individuals or businesses, who then resell them to consumers.
is selling items in relatively small amounts directly to customers.
is selling an intangible service Into a good), which is often consumed when it is purchased.
Retailing
is producing (making) the items that are eventually sold.
is selling items in bulk to individuals or businesses, who then resell them to consumers.
is selling items in relatively small amounts directly to customers.
is selling an intangible service Into a good), which is often consumed when it is purchased.
Service
is producing (making) the items that are eventually sold.
is selling items in bulk to individuals or businesses, who then resell them to consumers.
is selling items in relatively small amounts directly to customers.
is selling an intangible service Into a good), which is often consumed when it is purchased.
Examples of a stakeholder
workers & customers
suppliers & government
investors & the community
Competitors
good compensation, nice conditions
workers
suppliers
customers
investors
community
hassle-free business, prompt payment
workers
suppliers
customers
investors
community
high-quality product, great service
workers
suppliers
customers
investors
community
reliable information, profitability, ROI
workers
suppliers
customers
investors
community
jobs, few disruptions, contributions
workers
suppliers
customers
government
community
legal operation, taxes
workers
suppliers
customers
government
community
What does ROI stand for?
Resource Opportunity Index
Return on Innovation
Return on Investment
Resilient Outcome Innovation
What is opportunity cost?
measure of how much regret you’ll experience later for choosing Netflix over that online coding course you’ve been meaning to start.
The likelihood of success and the next best potential profit.
n extra cost for all the fun, opportunities, and potential success you missed out on by not choosing the other path.
the unspent, unrealized potential in your decisions
What is overhead?
is the drawer full of office supplies and admin costs you never asked for, yet somehow, they just keep multiplying.
the required amount of homework that comes with running a business.
ongoing business expenses, such as utilities, supplies, and salaries
the extra weight your company carries around, like a bunch of unnecessary meetings, redundant reports, and the half-full coffee cups that never get emptied.
vary by business type and product
costs
time
location
registration
how much, whose, and when
costs
time
location
registration
HQ, production, receiving, sales
costs
time
location
registration
ownership, liability, incorporation
costs
time
location
registration
how businesses quantify their customer loyalty over time, gauge overall success, and indicate their place in the market
customer acquisition
worker acquisition
Customer retention
worker retention
the process of getting potential customers to buy your products
customer acquisition
worker acquisition
Customer retention
worker retention
a product’s distinct characteristics that make it preferred
USPS
Unique selling point
USP
SWOT
the study of how individuals and businesses affect an economy & it is a bottom-up approach to analyzing economic activity
macroeconomics
microeconomics
the study of overall economies, including how governments, industries, businesses, and consumers behave and it is a top-down approach
macroeconomics
microeconomics
physical product, such as food, clothes, cars, and smartphones; depending on the item,
a good can potentially be consumed later
good
service
intangible product, such as a hotel stay, haircut, car repair, and insurance; a service is most often consumed when it is produced
good
service
Traditional economy
Resources are limited to what occurs naturally locally; there is little waste and no surplus
Products are consumed within the community itself or traded with neighboring communities
Common in less-developed and rural areas; economies start traditional, then develop
is characterized by dedication to local, community customs, history, and values.
“the way it’s always been done” because it’s a proven, reliable method; it works
Command economy
is characterized by a central authority that controls the economic system.
The government makes decisions (products, quotas, prices) according to a central plan
The government monopolizes and controls all essential, valuable industries (finance, utilities)
Tends to be more rigid, less innovative, and offer little choice to consumers (for efficiency)
Cuba, North Korea, China, and the Soviet Union are all examples
Market economy
is characterized by supply and demand, with little government intervention.
Economic decisions are made by millions of businesses and people (supply & demand)
Since individual choice is the main factor, there are countless similar items and options
Competition inspires innovation and provides more options and lower prices for consumers
Mixed economy
characterized by multiple economic types (traditional, command, market).
Individuals, businesses, and the government all make economic decisions (tradition, too)
Most industries and businesses are private, and some are public, especially essential services
A mixed economy often results from a country transitioning out of another economic system
Profit margin
divide profit by price.
multiply profit by price.
add profit by price.
subtract profit by price.
As the product price goes up, supply increases. (As the price goes down, supply decreases.) The supply curve slopes upward, because producers are willing to supply more of an item at a higher price.
Law of Supply
Law of Demand
As the product price goes up, demand decreases. (As the price goes down, demand increases.) The demand curve slopes downward, as customers are less willing to buy more of an item at a higher price.
Law of Supply
Law of Demand
Is a cost that is paid regardless of how many units are produced. Since it is not associated with production, it is also known as indirect cost.
Fixed costs
Variable costs
Is a cost that changes based on how many products are produced. Since it is associated with production, it is also known as a direct cost.
Fixed costs
Variable costs
A product changes in response to different prices.
elastic demand
inelastic demand
A product does not change in response to different prices.
elastic demand
inelastic demand
The business’s cost of making one additional unit of the same product.
(a)
As more units are produced, there is a decrease in the per-unit cost.
(a)
What is include in Maslow’s Hierarchy of Needs?
Physiological
Security
Security
Esteem
Esteem
Initial uses for a business plan …
1. A business plan allows you to take an idea from concept to reality. Flesh things out …
2. A business plan helps ensure that you do not miss a key step or factor. Are we good?
3. A business plan validates that the idea is actually a good one. Can it really work?
Someone who starts and operates a business all by themselves, with no other workers (other than perhaps the occasional contractor).
(a)
a person who shares the same vision and helps to finance and operate the business
(a)
a person who helps out (free labor!) and may or may not transition into paid staff
(a)
Four core functions of a business
HR (people)
marketing (sales)
finance (money)
operations (product)
Is a person who is self-employed and provides services to a business. They are not an actual employee.
1099
Independent contractor
Dependent contractor
1089
One who works 40+ hours per week (occasionally 35+). A business is often expected to provides benefits
full-time employee (FTE)
part-time worker
per-diem worker
One who works 34 hours or less per week (the most common range is 15-30 hours). Benefits are usually not expected.
full-time employee (FTE)
part-time worker
per-diem worker
One who has no set schedule and works as many or little hours as needed. They are often paid per day, by the shift (not hourly).
full-time employee (FTE)
part-time worker
per-diem worker
A set annual amount, divided into regular paychecks, that is paid regardless of an employee’s hours or production. Their paycheck does not vary.
Salary
Wage
Benefit
PTO
Commission
Payment for work based on the number of hours a person worked or the number of pieces they produced. Their paycheck can vary significantly.
Salary
Wage
Benefit
PTO
Commission
Rewards, other than cash, given as part of a compensation package. For many prospective employees, they are a significant deciding factor.
Salary
Wage
Benefit
PTO
Commission
An employee is still paid for a day of work, even if they do not work that day, often due to sickness, vacation, or holidays
Salary
Wage
Benefit
PTO
Commission
A percentage of an individual sale; can be commission-only or with a wage/salary.
Salary
Wage
Benefit
PTO
Commission
Strategically using resources to achieve business objectives.
Management
Leadership
Inspires things like motivation, respect, trust, and loyalty from “followers” (e.g., colleagues and reports).
Management
Leadership
Centralized, top-down, authoritative decision-making; common in the military.
Autocratic
Democratic
Paternalistic
Laissez-faire
Consults but retains control; views the team as a family; common in family business.
Autocratic
Democratic
Paternalistic
Laissez-faire
Solicits input and participation from the team; delegates control; varies by manager.
Autocratic
Democratic
Paternalistic
Laissez-faire
Little input from management; can feel like “mild anarchy;” varies by manager.
Autocratic
Democratic
Paternalistic
Laissez-faire
Potential disadvantages of buying an existing business.
The business model is flawed, unsustainable, or just not profitable.
It may have big issues, like a poor reputation with customers, a faulty product, or bad contracts.
Key staff may be entrenched and/or challenging, inhospitable, unproductive, or dysfunctional.
The buyer is dependent on what they’re told and can learn. “You don’t know what you don’t know.”
The business may have its equipment, suppliers, and operational processes already in place.
Why would an existing business be on sale?
low revenue/profit - not making it financially
new conditions - cannot adapt (e.g. COVID, AI)
new competitors - online, next door, big brands
partner disputes - time to get out and move on
ready for change - other opportunities, retiring
Potential advantages of operating a family business.
Leadership in a family business is often in place for a long time, leading to stability and continuity.
Workers may be more dedicated and loyal, since the work being done is ultimately “for the family.”
There may be understanding and support for personal commitments, like childcare or school.
A successful family business likely already has a product, processes, a location, and customers.
The former owners may still be around and have influence, meaning there is less autonomy.
When the business entity pays a tax on its income and the owner also pays a tax on any income (profit) that is distributed to them.
Double-taxation
Pass-through taxation
When the business entity is treated as the same entity as the owner, so, only the owner is taxed on income. (This is better 👍).
Double-taxation
Pass-through taxation
The owner is liable for all of the business’s activities, for better or worse.
unlimited liability
limited liability
Personal assets are protected, but partners still liable for things like malpractice.
unlimited liability
limited liability
A hybrid form of business that combines the simplicity of a sole prop with the liability protections of a corporation
LLC
Partnership
Sole Proprietorship
Corporation
Unincorporated business with two or more owners. The partners effectively “are” the business; there is no separate legal entity. The partners usually share the work, profit, and liability.
LLC
Partnership
Sole Proprietorship
Corporation
Unincorporated business with one owner. The “sole” owner effectively “is” the business; there is no separate legal entity.
LLC
Partnership
Sole Proprietorship
Corporation
An incorporated business that is a separate entity from its owner(s).
LLC
Partnership
Sole Proprietorship
Corporation
A law that promotes competition
and effectively makes monopolies illegal.
(a)
At home, it can be difficult to maximize productivity and achieve work-life balance. Other challenges are office space limitations, distractions, and isolation.
True
False
The tenant pays base rent, plus some maintenance, property tax, and/or insurance fees
Percentage Lease
Gross Lease
Net Lease
Also known as a full-service lease, the tenant pays only the base rent amount
Percentage Lease
Gross Lease
Net Lease
The tenant pays base rent, plus a percentage of their sales (often 5-10%)
Percentage Lease
Gross Lease
Net Lease
