TN Business and Law Exam questions with correct answers

Success Factors in Your Business organized, consistent approach Factors in Business Failure poor planning and inadequate management Entrepreneur a person engaged in strategic activities that involve initiation and development of a new business Calculated Risk something that is well thought through where all outcomes are considered Rewards of Owning Your Own Business own boss, flexible time, freedom and independence, personal satisfaction Challenges of Owning Business long hours, manage cash flow, payroll, overwhelming responsibility, finding/keeping employees, taxes, government regulations Business Plan a document that outlines business strategies and goals Key Functions of a Business Plan planning tool, loan or investor document, benchmarking tool Element of a Business Plan cover page, executive summary, company summary, products and services, market analysis, market strategy, financial plan What could be a pitfall to a business plan? must portray an accurate picture of business What are the different types of business structures? sole proprietorship, partnership, c corporation, s corporation, limited liability company Sole Proprietorship a business that has one individual as the owner who is responsible for 100% of the decisions made on behalf of the business and owns all of the business assets Advantages of a Sole Proprietorship minimal legal restrictions, simple ownership form, low startup cost, sole owner of profits, freedom in decision making Disadvantages to a Sole Proprietorship unlimited liability, less available capital, possible difficulty in obtaining long term financing, dissolution of the business in even of owner death Partnership a business relationship between two or more persons who join to carry on a trade or business. each person contributes money, property, labor, or skill, and each partner expects to share in the profits and losses of the business.