Notesale: Turn your study into money

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Business Enterprises
Purpose: To encapsulate what businesses and entrepreneurs
mean
...


Recognizing the ten influences on businesses as well as the
many funding options
...

1
...


2
...
The people who take risks and put their own money into a
business and industrial endeavors are called entrepreneurs
...
Rockefeller, Andrew Carnegie, Bill Gates, and
others
...

entrepreneurial in terms of self-improvement, autonomy in making
decisions, innovation, and taking risks
...


The Importance of Enterprises - Businesses offer products and

services
...


The economy is developed through enterprises
...
Every country must
promote economic growth to raise people's living standards, end
poverty, and advance society
...


a
...
The wealth

produced

by the same contributes

significantly to the growth of the country
...
Their innovations, ideas, and
views are also of immense value to the country
...
Employs a

large number of people: It is

misconception

that

everyone

unemployed

a common
turns

to

entrepreneurship, however, this is inaccurate
...

Entrepreneurs provide new employment opportunities
...


c
...


The world would have been a much more boring place to live if not
for

the

explosion

of

inventions
...


d
...


An entrepreneur is rewarded in other ways besides only financially,
too
...


e
...
It
offers opportunities to several employees of the company
...
As a result, the contribution of entrepreneurs enhances
the quality of life in the economy
...
Economic

emergence

increases:

If

someone

starts

an

enterprise, they have the greatest possibility for growth
...


This is a significant motivator for any entrepreneur because the
information and skills they acquire while running their business
become their assets for life, something that typically is lacking
when an individual is employed
...
In this way, he or she and the
economy as a whole gain from it
...


Three Most Important Aspects of Enterprising - The three

essential components of enterprise, which include a person's pursuit of
opportunity regardless of the resources under control, are:

a
...
These are
the dangers related to buying raw materials, investing money,
promoting products, losing money, failing, going out of business, or
dealing with fierce competition
...
An
intrinsic quality of an entrepreneur is their ability to take risks
...
Many different threats could happen
...


b
...
A
person who takes the initiative will engage in product innovation,
market research, the introduction of novel production techniques,
and ways for restructuring entire industries
...
A
creative idea is executed and used effectively through such
innovation
...


c
...
An entrepreneur starts his business
after giving it some thought and, after weighing the advantages
and disadvantages of each option, chooses the best one
...


4
...
Skill - Anyone with unique expertise who can also serve as a
source of inspiration for others is a good candidate for beginning a
business
...


b
...

They need to be able to make decisions quickly and with strength
on a variety of issues
...
One of your key duties is to redesign
your company's layout to make it more efficient
...
Creativity - As the name suggests, creativity refers to any
individual who uses resources economically wisely and engages in
useful activities
...


They develop fresh concepts and nurture them in the context of
their expertise, wisdom, and intellect
...


d
...
For this, a planner is needed to lead the

company's economic development and meticulously organize all
subsequent attempts
...

e
...
Leadership- A leader uses leadership to properly motivate his or
her team members so that they can work tirelessly for the good of
the company
...


5
...
The following variables have the greatest impact on
businesses:

a
...
One legal strategy to safeguard the interests of
small businesses is to reserve specific products for exclusive
manufacturing in the small sector
...
Infrastructure- The government should provide land and factory
sheds at discounted rates, adequate power, water, coal, and other
energy sources, transportation facilities, the availability of wagons,
a supply of raw materials, and other physical facilities to make it
easier for new enterprises to be established
...
Financial- If the new businesses are to provide services and
expand, significantly fixed and operating capital needs to be
required
...
In developing nations
with little capital, where businesses and industries must learn to
deal with an underdeveloped capital market, the issues become
more severe
...
The practice of
borrowing money is fairly widespread
...
Additionally, it implies that the amount borrowed
must be repaid with interest
...


d
...
As a result,
competition is very fierce
...


e
...
As a result, the stakeholder
is aware, which increases his level of involvement
...
Research and development (R&D) - To compete in the global
market, businesses are spending a lot of money on R&D projects
today
...
Technological

developments

-

Industries

are

introducing

computerized production and process controls and increasing
automation significantly
...

The business that has made the most technological strides
benefits from economies of scale in manufacturing and marketing
...
Communicational - The lack of knowledge causes many
businesses to fail
...


Government agencies, business associations, financial institutions,
and consultants to the private sector all have a part to play in this
...


i
...
In addition to selling shares,
businesses need external resources to survive
...


j
...
For instance, you might use trade credit if you
only need money for a short time to buy some stock
...


6
...
When seeking start-up financing,
there are many options to take into account, including:

a
...
Leasing of equipment is mostly
done to make it easier for businesses to increase their capacity,
diversify, and update their technology in response to market
demands
...


b
...
These are frequently accessible in places where
the unemployment rate is high
...

Governmental evaluations rate these grants that they create for a
specific sector
...


The government often offers sufficient funding in the form of grants
and subsidies to situations that are recognized as priority
industries
...


c
...
Interest is added to the repayment
...
To
get a loan while beginning a
small business, the lone
proprietor frequently needs to
put up their home or other
personal assets as collateral
...


d
...
For instance, microloans are very tiny loans
provided to the poor to assist them in starting their own business
...
One may also apply for a term loan, which is
a sum of money that is repaid over a predetermined period in
regular installments
...


Types of Business Entities- An entrepreneur can choose from a

variety of companies to suit their needs, goals, preferences, and
designs, including:

a
...
The fact that it is the least
regulated of all business structure types is a significant factor in
this
...


The company is the owner for tax and legal reasons
...
The business terminates upon the death of
the owner, and the owner is personally liable for its debts
...


b
...
Each partner invests money, assets, labor, skills,
and/or other resources into the partnership and anticipates
receiving a portion of the company's gains or losses in return
...
It might even just be a
verbal agreement between the parties; however, this is not
advised
...


c
...
It combines aspects of a
corporation and a conventional partnership
...
It has only
recently become a legal form of commerce in all fifty states and
Washington, D
...

It is special in that it provides both the tax advantages of a
partnership and the limited personal liability of a corporation
...

Additionally, managers who are not members could be hired to run
the company
...
Corporation- A Company is a legal construct
...


It has evolved into the preferred corporate structure for many small
enterprises in recent years
...
Additionally, there are a lot more state requirements
that apply to corporations' creation and functioning
...


Type of Enterprise

Advantages

Disadvantages

Sole Proprietorship

● Total Control of
the Owner
● Simplicity of
Organization
● Least Regulated
of all Business

● Risk to the
Assets of Sole
Owner
● Potential
Difficulty in
Obtaining Loans
● Lack of
Continuity

Partnership

● Greater
Opportunity for
Business
● Tax Advantages
● A Simple Form
of Business

● Potential for
Conflict between
Partners
● Unlimited
Personal
Liability
● Legal Liability

Limited Liability

● Limited Liability
● Limited Risk
● Easier to Attract
Investors

● Conflict among
members
● Limited Liability
● Subject to more
Paperwork
requirements

● Limited Liability
● Perpetual
Existence
● Corporate Stock
can be freely
sold or traded
without the other
member’s
consent

● Loss of
Individual
Control
● Technical
Formalities
● Profits are
distributed to all
the shareholders

Company (LLC)

Corporation



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