KSB-111 Entrepreneurial Mindset and Business Structures

Sole Proprietorship

A type of business organization owned and run by one individual with no distinction between the owner and the business.

General Partnership

A business structure where two or more individuals manage and operate a business together.

Limited Partnership

A partnership consisting of one general partner who manages the business and limited partners who invest without participating in management.

Corporation

A legal entity completely separate from its owners, providing liability protection to its shareholders.

LLC (Limited Liability Company)

A flexible business structure that combines the features of a corporation and a partnership.

C Corporation

A corporation that is taxed separately from its owners under Subchapter C of the Internal Revenue Code.

S Corporation

A special type of corporation that meets specific IRS requirements and is taxed under Subchapter S.

Nonprofit Organization

An organization that operates for a charitable purpose and does not distribute profits to owners.

Entrepreneurial Mindset

A specific way of thinking that seeks out opportunities, is risk-tolerant, and is innovative.

Cash Flow Problems

Financial issues arising from the mismanagement of the income stream versus expenses.

Managerial Inexperience

A lack of experience in managing a business, potentially leading to failure.

Customer Focus

The practice of prioritizing customer needs and experiences in business operations.

Business Structures

Different forms of organizing a business, including sole proprietorships, partnerships, and corporations.

SWOT Analysis

A strategic planning tool that identifies strengths, weaknesses, opportunities, and threats.

Franchise

A type of business that allows individuals to operate a business under an established brand.

C-Corp vs S-Corp

C-Corp is taxed separately, while S-Corp's income is passed through to shareholders to avoid double taxation.

Value Proposition

A statement that explains how a product or service meets the needs of customers and stands out from competitors.

Intellectual Property

A category of property that includes intangible creations of the human intellect, such as patents, trademarks, and copyrights.

Angel Investor

An affluent individual who provides capital to startups in exchange for ownership equity or convertible debt.

Venture Capital

Investment funds that manage the pooled money of investors to invest in startups and small businesses with long-term growth potential.

Bootstrapping

The process of starting and growing a business using minimal financial resources, relying on personal savings and operating revenues.

Exit Strategy

A plan for how an entrepreneur will sell their ownership in a company to investors or the public, often targeting a specific return.