Entrepreneurship and Forms of Business Ownership

Vocabulary flashcards covering key terms, famous entrepreneurs, business ownership forms, stock market definitions, and franchise structures from the lecture notes.

Entrepreneur

Someone who starts their own business.

Oprah Winfrey

Born on the poor side of Chicago and in trouble a lot, she became successful and is now the richest self-made woman in the USA.

Bill Gates

Entrepreneur who wrote his first computer program at age $15$ and made $5,000$.

Marcel Bich

Known as the king of Bic pens, utilizing cheap off-shore manufacturing and low wages.

Fred Smith

Wrote a proposal in college about an overnight delivery system, received a C- from his instructor, and later started the business.

Brian Hill

Born in Vancouver where his father and uncle owned a clothing store in Kerrisdale; founder of Aritzia, which has $140$ stores.

Chip Wilson

Born in the US, moved to Calgary then Vancouver, and created yoga-styled sportswear brand Lululemon.

Jeff Bezos

Entrepreneur who started by selling books online and created Amazon Kindle.

Elon Musk

Born in South Africa with a Canadian mother, who attended Wharton School Business and Standford.

Proprietorship

A form of business ownership with $1$ owner. Advantages include easy startup, keeping all profits, and making all decisions; disadvantages include high responsibility, absorbing all losses, and unlimited liability.

Unlimited Liability

Financial liability where an owner suffers all losses personally without financial protection.

Partnership

A form of business ownership with $2$ or $3$ owners. Advantages include shared responsibility, more ideas, and more startup money; disadvantages include sharing profits, disagreements, confusing employees, and unlimited liability.

Corporation

A business structure with limited liability and many owners. Advantages include limited liability, more startup money, and hiring experts; disadvantages include losing personal contact, sharing profits, and extra taxes.

Share

One ownership part of a corporation.

Shareholder

A person who owns a share in a corporation.

Stock Market

A place where shares are bought and sold, such as TSX or NYSE-Wall St.

Stockbroker

A middle person between buyers and sellers in the stock market.

Commission

A $5\%$ fee charged on buying and selling stock shares.

Dividend

Profit paid out per share.

Annual General Meeting (AGM)

A legally required meeting held once a year for all shareholders to make future plans and elect the Board of Directors.

Board of Directors

A group elected by the AGM (usually the biggest shareholders) that meets once a year to hire managers such as the president, VP, CEO, and GM.

Credit Unions & Co-operative

Business structures (such as Point Mcneil Credit Union or Otter Coop) allowing small places to have a store or bank where profits stay in town and the rich cannot dominate.

VanCity

Vancouver City Savings Credit Unions.

Franchise

Buying a proven business idea with high success rates and instant customers, where the parent company provides training, designs the store, sets the menu, and sells the food, but requires a franchise fee and monthly advertising fees.

McDonald's Franchise

A franchise model with a fee of $1,700,000$ ($1515$ locations in Canada and $13882$ in the USA) where the menu, store design, and food supply are strictly controlled by the corporation.