TN Business and Law Exam

Success Factors in Your Business - Answer- organized, consistent approach Factors in Business Failure - Answer- poor planning and inadequate management Entrepreneur - Answer- a person engaged in strategic activities that involve initiation and development of a new business Calculated Risk - Answer- something that is well thought through where all outcomes are considered Rewards of Owning Your Own Business - Answer- own boss, flexible time, freedom and independence, personal satisfaction Challenges of Owning Business - Answer- long hours, manage cash flow, payroll, overwhelming responsibility, finding/keeping employees, taxes, government regulations Business Plan - Answer- a document that outlines business strategies and goals Key Functions of a Business Plan - Answer- planning tool, loan or investor document, benchmarking tool Element of a Business Plan - Answer- cover page, executive summary, company summary, products and services, market analysis, market strategy, financial plan What could be a pitfall to a business plan? - Answer- must portray an accurate picture of business What are the different types of business structures? - Answer- sole proprietorship, partnership, c corporation, s corporation, limited liability company Sole Proprietorship - Answer- 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 - Answer- minimal legal restrictions, simple ownership form, low startup cost, sole owner of profits, freedom in decision making Disadvantages to a Sole Proprietorship - Answer- unlimited liability, less available capital, possible difficulty in obtaining long term financing, dissolution of the business in even of owner death