GMETRIX ESB V.2 final review exam with 100% correct answers

What is entrepreneurship? Setting up a business with the aim to make a profit Examples of B2B 1) Wholesale flooring distributor 2) Purchases requiring a tax exemption certificate Examples of B2C 1) Chain of local grocery stores 2) Motorcycle repair shop S-Corps * Offers many of the same benefits as a C Corporation, but better for smaller businesses * 100 shareholders maximum allowed. All must be U.S citizens or residents * Shareholders are not personally responsible for business liabilities * Taxed once-only the shareholders pay on profits received. A separate tax return is required for the business C-corps * Best if the company plans to someday sell stock to the public; can issue shares to founders, employees, and investors. * Unlimited owners (aka "shareholders") allowed * Shareholders are not personally responsible for business liabilities. * Taxed twice-business pays at the corporate level, and shareholders pay on income received. A separate tax return is required for the business Sole Proprietorship * Best if you need an easy set-up. You may still need a DBA or business licenses to operate legally, but no other paperwork is * One owner maximum * The owner is personally responsible for business liabilities. No personal liability protection. * Taxed once- you pay on profits in your personal tax return. Separate tax return not needed. Limited Liability Company (LLC) * Popular choice for business concerned about liability protection. * Unlimited owners (aka "members") allowed. No shareholders. LLCs cannot go public. * Members are not personally responsible for business liabilities. * An LLC can choose how to be taxed Who are the default owners of equity in a business? Founders, partners, and shareholders What is Piecework? What are the stages of the Business life cycle? 1) Existence 2) Survival of the fittest 3) Success 4) Takeoff 5) Maturity What are the elements of the design thinking process? Empathize: Research your users' needs Define: State your users' needs and problems Ideate: Challenge assumptions and create ideas Prototype: Create solutions Test: Try your solutions Successful entrepreneurs have mindsets that typically possess which three characteristics? Responsible, adaptable, tenacious Which is one of the greatest benefits of being an entrepreneur? Schedule control What are some characteristics of a business opportunity? Price, quality, selection, location, service Which two documents summarize the business plan of a company? Lean canvas, pitch deck What is a lean canvas? A single-page business summary template created by Ash Maurya What is a pitch deck? A slide presentation for potential investors that summarizes of the key items of a business What is a business plan? Multi-page document describing and detailing a business What are the components of a business plan? * 10-100 pages * Highly text-based * Used to get investor buy-in What are the components of a pitch deck? * 10-20 slides * Highly visual * Used to get investors attention What is a balance sheet? a summary of business assets (what the business owns) and liabilities (what the business owes). It shows 'owner's equity' What is a marketing plan? An operational document that outlines a company's advertising strategy to generate leads and reach its target market. Which three elements are required to have a Trade Secret? * Subject to reasonable efforts to maintain its secrecy * Others cannot legitimately obtain the information * Information has economic value not generally known What is CC? Identifies it is a Creative Commons license What is BY? Credit must be given to the creator What is SA? Adaptions must be shared under the same terms What is NC? Only noncommercial uses of the work are permitted What is ND? No derivatives or adaptations of the work are permitted What is a Target Market? Group of potential customers to whom a company wants to sell its products and servic