Entrepreneurship

🔹 UNIT 1: Foundations of Entrepreneurship (Chapter 2) 

Entrepreneurship Basics 

  • Entrepreneur: A person who starts and manages a business, taking risks to earn a profit. 

  • Entrepreneurship: The process of creating, developing, and running a business to meet market needs. 

Economic Systems 

  • Understand that the United States operates in a free‑market economy, where businesses and consumers make decisions with limited government control. 

Laws, Ethics, and Regulations 

  • Business laws: Rules that businesses must follow to operate legally. 

  • Ethics: Moral principles that guide business decisions beyond the law. 

  • Contracts: Legally binding agreements between parties. 

  • OSHA: Government agency that ensures safe working conditions. 

Risk Management 

  • Risk: Chance of financial loss or harm. 

  • Liability: Legal responsibility for damages or injuries. 

  • Insurance: Financial protection against business risks. 

  • Taxes: Pay for public services such as roads, schools, emergency services, and government operations. 

 

🔹 UNIT 2: Business Ownership & Planning (Chapters 3 & 5) 

Critical Thinking in Business 

  • Analyze problems, evaluate options, and select solutions that best meet business needs. 

Business Ownership Structures 

  • Sole Proprietorship, Partnership, Corporation, LLC 

  • Licensing: Legal permission to operate a business. 

Franchising 

  • Franchise: A business model where an owner buys the rights to use a company’s name and systems. 

  • Franchise Disclosure Document (FDD): Legal document outlining rules and financial obligations. 

  • Understand royalties, fees, and startup costs associated with franchises. 

 

🔹 UNIT 3: Employability & Human Resources (Chapters 9 & 10) 

Work Ethic & Collaboration 

  • Work ethic: Reliability, responsibility, and professionalism. 

  • Team contribution and collaboration are essential in business success. 

  • Compensation is often tied to job performance and expectations. 

Communication & Customer Interaction 

  • Communication: How businesses share information clearly with employees and customers. 

  • Customer interaction: How businesses engage with customers before, during, and after a sale to create satisfaction and loyalty. 1 

 

🔹 UNIT 4: Marketing, Distribution & Operations (Chapter 11) 

Revenue & Financial Performance 

  • Diversified revenue streams: Multiple sources of income that stabilize a business. 

  • Cost of goods sold (COGS): Direct costs to produce products. 

  • Expenses: Costs required to operate the business. 

Distribution & Purchasing 

  • How products move from suppliers to customers. 

  • Pricing decisions affect profit and demand. 

Inventory & Supply Chain 

  • Inventory: Goods held for sale (classified as an asset). 

  • Stockouts: When inventory runs out, hurting sales and customer trust. 

  • Supplier and vendor relationships affect reliability and cost. 

Performance Metrics 

  • Productivity: Output compared to input. 

  • Inventory systems help track stock levels efficiently. 

 

🔹 UNIT 5: Startup Funding (Chapter 13) 

Funding Sources 

  • Bootstrapping: Using personal funds to start a business. 

  • Debt financing: Borrowed money that must be repaid (loans). 

  • Equity financing: Selling ownership shares (investors, venture capital). 

Funding Decisions 

  • Understand when a business should choose loans vs. investors based on goals and risk. 

 

🔹 UNIT 6: Financial Management & Analysis (Chapter 14) 

Financial Statements & Terms 

  • Assets: What a business owns. 

  • Liabilities: What a business owes. 

  • Taking out a loan increases liabilities. 

Financial Ratios & Literacy 

  • Debt ratios: Used by banks to measure financial risk. 

  • 3 Cs of Credit: Character, Capacity, Capital. 

Accounts & Credit 

  • Accounts payable: Money owed to suppliers. 

  • Trade credit: Buying now and paying later. 

ROI & Financial Planning 

  • Return on Investment (ROI): Measure of profit compared to cost. 

  • Understand how taxes impact business planning.