1-27 Entrepreneurship and Forms of Business Ownership

Monitor and control operations closely cope with red

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Unformatted text preview: l operations closely Cope with red tape Adjust to growth Seek advice & assistance Current Trends Current America is not producing as many start-ups as it America did a decade ago and those that have been created are providing fewer jobs. Due to created Human capital Government regulation Raising Money Digital startups are becoming ubiquitous and Digital reshaping entire industries. “Software is eating the world.” KNOW HOW TO CODE KNOW Remember that: Larger businesses that are more heavily capitalized, organized as corporations, started on a full-time basis by a team of entrepreneurs who have a written business plan and are seeking to provide products to customer missed by others will, on average, be more successful than other new businesses… Such things as emphasizing marketing and financial controls, focusing their activities on a single market, and not competing on price will enhance a new venture performance… Start-ups founded by people who obtain an education and then get experience working in the industry in which they plan to start a business, and who are starting their businesses with the goal of making money, have better financial performance, on average, than other startups… The Illusions of Entrepreneurship, Scott Shane, 2008 Forms of Business Ownership Sole proprietorship A business owned and managed by one person Partnership A legal form of business with two or more owners Corporation A legal entity with authority to act and have liability separate from its owners Franchise The right to use a specific business’s name and sell its products or services in a given territory Cooperatives A business owned and controlled by the people who use it – producers, consumers, or workers with similar needs who pool their resources for mutual gain. Corporations More money for investment Initial cost Limited liability Paperwork Separation of ownership/mgmt. Two tax returns Termina...
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