Forms of Business Ownership + Entrepreneurship & Starting a Small Business (Vocabulary Flashcards)

Vocabulary flashcards covering forms of ownership, liability, co-operatives, entrepreneurship, SMEs, target markets, pain points, incubators/accelerators, intrapreneurs, and related concepts from the lecture notes.

Sole Proprietorship

A business owned and usually managed by one person; easy to form.

Advantages of Sole Proprietorship

Ease of starting and ending; be your own boss; pride of ownership; retain profits; no special taxes; less regulation.

Disadvantages of Sole Proprietorship

Unlimited liability; limited financial resources; management difficulties; heavy time commitment; few fringe benefits; limited growth; limited lifespan; possibly higher taxes.

Corporation

A legal entity with the authority to act and have liability separate from its owners (stockholders/shareholders).

Liability (business ownership)

The legal and financial responsibility an owner has for the debts and obligations of their business.

Unlimited Liability

You are personally responsible for the debts and damages of the business; in a sole proprietorship, the owner and business are considered one.

General Partner

An owner in a partnership who has unlimited liability and is active in managing the firm.

Limited Partner

An investor who funds the business but has no management responsibility and liability limited to the investment.

Co-operatives (Co-ops)

An incorporated business owned by an association of people seeking to satisfy common needs; profits are shared among members.

Consumer Co-operative

Co-ops that provide members with goods and services for personal use (e.g., food, housing, credit unions).

Producer Co-operative

Co-ops where producers pool and market members’ goods/services directly, often related to agriculture or professional services.

Multistakeholder Co-operative

Co-ops whose membership includes different categories sharing a common interest (e.g., health or community services).

Intrapreneur

A creative person who works as an entrepreneur within a corporation, using existing resources to create new products and profits.

Micropreneur

The smallest of small businesses, usually with fewer than five employees, often home-based.

Home-based Business

A business operated from the home, common among micropreneurs.

Online Businesses

Small businesses that sell goods or services online and compete with other small and large businesses.

Incubators

Programs that provide space, services, advice, and support to help new and growing businesses in early stages.

Accelerators

Programs that offer mentorship, investors, and support to help developing companies become stable and self-sufficient at a later stage.

Entrepreneurship

The act of accepting the challenge of starting and running a business.

SMEs (Small and Medium-Sized Enterprises)

Businesses classified by size: small (1–99 employees), medium (100–499 employees); SMEs are major drivers of innovation and job creation in Canada.

Target Market

A group identified as the most likely potential customers for a product, based on characteristics like age, income, and lifestyle.

Pain Points

Specific problems in an industry that, when solved, can lead to viable business ideas.

Motivations to Become an Entrepreneur

Desire for a new idea or product, higher profits, the challenge, family patterns, independence, or lack of suitable job options.

Traits of Successful Entrepreneurs

Drive for achievement, ambition, competitiveness, autonomy, perseverance, self-confidence, risk tolerance, creativity, belief in destiny control, and action-orientation.