entrepreneurship (stage 5-10)

What is a business plan?

A written document describing all aspects of a business

Why is a business plan important?

It outlines what you plan and how you will do it

Who should write the business plan?

Business owner

Which legal structure is the simplest and least expensive to start?

Sole proprietorship

Which legal structure is a separate legal entity?

Corporation

Which legal structure has unlimited liability?

Sole proprietorship

What is a general partnership?

An association of two or more people carrying on a business for profit

In which structure is liability limited to the amount invested?

Limited partnership

What is one advantage of incorporation?

Easier to raise capital

What is one disadvantage of incorporation?

Legal formalities and cost

Does a sole proprietorship need to legally register its business name if it uses the owner’s personal name?

No

What business name is NOT allowed?

A name similar to an existing company

What is an elevator pitch?

A short presentation explaining your business

What should be included in an elevator pitch?

Your product, market, and competitive advantage

What is the main purpose of an elevator pitch?

To quickly explain what your business does and gain interest

What is content marketing?

Creating valuable information rather than selling

Why is content marketing important for entrepreneurs?

It builds awareness, trust, and customer loyalty

Which is an example of content marketing?

A business blog educating customers

What is traditional marketing?

Face-to-face, print, trade shows, and direct mail

Which is a traditional marketing channel?

Trade shows

What does SEO stand for?

Search Engine Optimization

What is the goal of SEO?

To make a website easier to find on search engines

What is the first stage of the sales pipeline?

Identify and filter leads

What happens in the post-purchase stage?

Relationship building and customer loyalty

What is debt financing?

Borrowed money that must be repaid

What is equity financing?

Money exchanged for ownership

One advantage of debt financing is:

Owner keeps full control

One disadvantage of equity financing is:

Loss of some ownership and control

What is bootstrapping?

Financing using personal and creative resources

Which is a bootstrapping method?

Using personal credit cards

What do banks and credit unions provide entrepreneurs?

Loans and lines of credit

What is a franchise?

A business operating using another company’s brand and system

One advantage of a franchise is:

Proven business system

One disadvantage of a franchise is:

Fees and royalties

One advantage of buying an existing business is:

Established customers

One disadvantage of buying an existing business is:

Possible poor reputation

What is a tangible asset?

Equipment

What is an intangible asset?

Brand reputation

What must businesses disclose to employees?

Legal employment conditions

What is crowdfunding?

Small online public contributions

Which structure provides limited liability and continuity of the business?

Corporation

Which structure allows shared authority between partners?

Partnership

What is one purpose of marketing?

To let customers know who you are and why they should buy

Which marketing method relies on word-of-mouth and customer trust?

Content marketing

What is customer service mainly used for?

Building loyalty and repeat business

What should a salesperson do before meeting a client?

Be professionally prepared

What is the main goal of sales?

Closing the sale and receiving payment

Which factor is important when buying a business or franchise?

Financial analysis

What is the difference between a public and private company?

Public companies sell shares on stock exchanges

Which of the following best describes entrepreneurship?

Owning and operating a business while taking on risk

Which section of the business plan is considered the most important?

Executive summary