gmetrix small business domain 1 lesson 1

The key objective of a small business owner is to generate ______.

profits

Entrepreneurs are willing to take on new opportunities and unknown ______.

risks

Tangible items that require pick-up or delivery are______.

physical

When a ______ purchases an item from a business, it is a business-to-consumer transaction.

customer

______ are for-profit corporations with limited liability.

S corporations

______ are ideal for international businesses.

C corporations

The ______ oversees daily operational and administrative functions.

COO (Chief Operating Officer)

A ______ votes on the management of a company.

stockholder

______ employees are paid a fixed amount each pay period.

Salary

Businesses can compensate employees for work they produce when being paid by ______.

piecework.

______ in addition to a lower salary.

Equity

During the ______ stage of the business life cycle, a company is regularly taking on new customers and starting to generate a consistent income.

survival

The owner may decide to sell their ownership in the company during the ______ stage.

exit plan

The five elements of the design thinking process are: empathize, define, ideate, ______, and test.

prototype

______ allowed one to see and experience a customer's perspective

Empathize

The design team creates multiple inexpensive versions of a product, known as ______.

minimal viable products.

Name one benefit of a franchise.

There is less risk involved in a franchise.

Are muffins a product or a service?

product

are AC repairs a product or service?

service

Is toilet paper a product or service?

product

Is jewelry a product or service?

product

Are web designs a product or service?

service

Is a couch a product or service?

product

Are guitar lessons a product or service?

service

Characteristics of a non-profit

No ownership, no US federal taxes.

Characteristics of C corporations

Best for international business even with being double-taxed.

Characteristics of a sole proprietorship

Easy to create but comes with unlimited liability.

Characteristics of S corporations

Lower tax rate that prevents the company from being double taxed.

Characteristics of an LLC

Ideal for a single owner seeking lower risk

Characteristics of a partnership

Shared financial backing

Responsibility of a founder

Creates the company.

Responsibility of a CFO

Oversees company finances.

Responsibility of a stockholder

Owns stock in the company.

Responsibility of a CEO

Reports tot he board of directors.

Responsibility of a COO

Oversees daily operational and administrative functions.

Responsibility of a stakeholder

Has a vested interest in the success of the company.

Describe equity compensation

Non-cash compensation (owning stock in the company perhaps)

Describe hourly compensation

Set rate of pay for hours worked

Describe commission compensation

Usually found in sales roles

Describe salary compensation

Set amount of pay in a given period

List the order of business life cycle stages.

Existence, survival, success, take-off, resource maturity, pivot or persist, exit plan

Michael owns a small but profitable tech company. He has been approached by a larger company that wants to purchase his business. In what business life cycle stage is Michael?

Exit plan stage

Bill just started a new graphic design business. He is advertising online and trying to gain customers. He just finished working with his first client. In what business life cycle stage is Bill?

Existence stage

Stephanie started a flower shop last year. She has a good customer base and money coming in. What business life cycle stage is Stephanie?

Survival stage

List the correct order of the design thinking process.

Empathize, define, ideate, prototype, test

During which stage of the design thinking process will the design team create multiple inexpensive product versions?

Prototype

During which stage of the design thinking process is a problem statement formed?

Define

Which stage of the design thinking process involves learning about customers' challenges?

Empathize