DECA entrepreneurship test questions and answers already passed

DECA entrepreneurship test questions and answers already passed Define SBA and list 3 ways they help small business The small business administration provides federal aid to small businesses. This is through education, grants, and loan guarantees. 2 reasons why Entrepreneurship is growing Corporate downsizing, need for dual incomes, global economy, government support, technology and the internet How is outsourcing leading to new industries It creates the opportunity to create a company that can preform a specific job for a company at a reduced cost to the company. For instance Janaking providing janitorial services to big companies or the food service at our school Define global economy Doing business around the world. This is now easier than ever before Difference between public and private businesses Government jobs like teachers police and government employees. Private jobs are corporate america jobs through entrepreneurs. Importance of entrepreneurship Small businesses employ over 50% of all private sector employees. It accounts for over 45% of private sector payroll. 97% of exports from small businesses and 60-805 of all new jobs over past 10 years What is a trade deficit When a company imports more than it exports Define brick and Mortar A business' physical location What does scaling a business mean Growing it Difference between an idea and opportunity An idea is a thought while an opportunity is an idea with commercial potential Define revenue stream A companies source of income Define business model How the company makes money or what the company does What is a key man Insurance that compensates for a major death in a company. Compensates for the death of a person that the company couldn't be run without what are owners of an LLC called Members What is pass through taxation The owner pays taxes on their individual tax returns as opposed to the total business profits What is the difference between a franchisor and franchisee The franchisor is the company that sells the franchise rights while the franchisee is the company that buys the rights Home based entrepreneurship Small business with limited reach and sales. No brick and mortar location. Examples are small landscape and consultants Serial entrepreneur Starts a business and sells it to another person. Usually these people do it for the challenge Portfolio entrepreneur Own shares of ownership in many different companies Internet entrepreneuer part time entrepreneurs that starts on the internet Traditional entrepreneurship A business that has a physical location for instance retail or restaurants corporate venturer A business that is started from within another business. Advantages and disadvantages of a sole proprietorship Advantages areTotal control over the company and profit, easy to start, and single taxation. Disadvantages are total liability, large workload, and difficult to get loans Advantages and disadvantages of a partnership Advantages are balance the workload and easier to get loans, disadvantages are you have to split the control and profit Advantages and disadvantages of a corporation Advantages include limited liability raise capital through stock sales, looks more professional, and easy to trade ownership. Disadvantages include cost to organize, difficult to organize, double taxation, and gov regulations difference between a C-corp and S-corp a c-corp is a traditional public corporation and an s-corp is a privately held company with under 100 shareholders What is a non-profit A company that cannot declare a profit at the end of the year. Makes money because the owner can draw unlimited salaries Advantages and disadvantages of franchises define entrepreneurship Process of owning managing or operating your business with or without partners