Pass the TN Business & Law Exam: Quick
Guide.
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57
, Pass the TN Business & Law Exam: Quick
Guide.
1. Success Factors in Your Business organized, consistent approach
2. Factors in Business Failure poor planning and inadequate
management
3. Entrepreneur a person engaged in strategic activities
that involve initiation and development
of a new business
4. Calculated Risk something that is well thought
through where all outcomes are
considered
5. Rewards of Owning Your Own Business own boss, flexible time, freedom and
inde-
pendence, personal satisfaction
6. Challenges of Owning Business long hours, manage cash flow, payroll,
overwhelming responsibility,
finding/keep- ing employees, taxes,
government regula- tions
7. Business Plan a document that outlines business
strategies and goals
8. Key Functions of a Business Plan planning tool, loan or investor document,
benchmarking tool
9. Element of a Business Plan cover page, executive summary, compa-
ny summary, products and services, market
analysis, market strategy, financial plan
10. What could be a pitfall to a business plan? must portray an accurate picture o
business
11. What are the different types of business structures?
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, Pass the TN Business & Law Exam: Quick
Guide.
sole proprietorship, partnership, c corpora- tion, s corporation, limited liability company
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57
, Pass the TN Business & Law Exam: Quick
Guide.
12. 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
13. Advantages of a Sole Proprietorship minimal legal restrictions, simple ownershi
form, low startup cost, sole owner of profits,
freedom in decision making
14. Disadvantages to a Sole Proprietorship unlimited liability, less available capit
pos-
sible diflculty in obtaining long term
financ- ing, dissolution of the business
in even of owner death
15. Partnership a business relationship between two or
more persons who join to carry on a
trade or busi- ness. each person
contributes money, prop- erty, labor,
or skill, and each partner expects to
share in the profits and losses of the
busi- ness.
16. Two types of partnership general and limited
17. Advantages of a General Partnership ease of formation, direct profit rewards,
larg-
er management base than that of a sole
pro- prietorship
18. Disadvantages to a General Partnership unlimited liability, potential for
disagree-
ments, lack of continuity, diflculty in with-
drawing from a partnership
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Guide.
1/
57
, Pass the TN Business & Law Exam: Quick
Guide.
1. Success Factors in Your Business organized, consistent approach
2. Factors in Business Failure poor planning and inadequate
management
3. Entrepreneur a person engaged in strategic activities
that involve initiation and development
of a new business
4. Calculated Risk something that is well thought
through where all outcomes are
considered
5. Rewards of Owning Your Own Business own boss, flexible time, freedom and
inde-
pendence, personal satisfaction
6. Challenges of Owning Business long hours, manage cash flow, payroll,
overwhelming responsibility,
finding/keep- ing employees, taxes,
government regula- tions
7. Business Plan a document that outlines business
strategies and goals
8. Key Functions of a Business Plan planning tool, loan or investor document,
benchmarking tool
9. Element of a Business Plan cover page, executive summary, compa-
ny summary, products and services, market
analysis, market strategy, financial plan
10. What could be a pitfall to a business plan? must portray an accurate picture o
business
11. What are the different types of business structures?
2/
57
, Pass the TN Business & Law Exam: Quick
Guide.
sole proprietorship, partnership, c corpora- tion, s corporation, limited liability company
3/
57
, Pass the TN Business & Law Exam: Quick
Guide.
12. 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
13. Advantages of a Sole Proprietorship minimal legal restrictions, simple ownershi
form, low startup cost, sole owner of profits,
freedom in decision making
14. Disadvantages to a Sole Proprietorship unlimited liability, less available capit
pos-
sible diflculty in obtaining long term
financ- ing, dissolution of the business
in even of owner death
15. Partnership a business relationship between two or
more persons who join to carry on a
trade or busi- ness. each person
contributes money, prop- erty, labor,
or skill, and each partner expects to
share in the profits and losses of the
busi- ness.
16. Two types of partnership general and limited
17. Advantages of a General Partnership ease of formation, direct profit rewards,
larg-
er management base than that of a sole
pro- prietorship
18. Disadvantages to a General Partnership unlimited liability, potential for
disagree-
ments, lack of continuity, diflculty in with-
drawing from a partnership
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