Quiz 1.

A. What is entrepreneurship.
 Entrepreneurship is the willingness to take risks and develop, organize and manage a
business venture in a competitive global marketplace that is constantly evolving.
B. What are the considerations in choosing a business.
 A track record―The length of time that a company has been in business tells you an
awful lot.
 Very Viability- there are a lot of suspect “get rich quick” schemes out there.if some one
tells you that you can become very wealthy virtually overnight while making very little
effort, be careful.
 Mind your marketibility- you can be offering the greatest product or service out there
and have no demand for it simply because you didnt do your home work
 Mind your marketibility- you can be offering the greatest product or service out there
and have no demand for it simply because you didnt do your home work.
 Look for a reasonable profitability timeline- The rule of thumb when starting a new
business is that it can take a full six months to a year for any profits to start kicking in.
 Seek out training and ongoing support- The most successful and reputable opportunities
offer comprehensive training and ongoing support to their purchasers and/or affiliated
members.
 Love what you do- Entrepreneurs who have a passion for what they do are more
successful than those who don’t.
 Avoid the newest fad or craze -Unless you know you’re looking for a business with a
very short shelf-life you need to stay away from companies that jump onboard with the
newest fad or trend, especially if it seems fleeting.
 Be aware of your where and how - and how you run your business have great
implications for your lifestyle, your wallet and your overall potential success.
 Have your eyes open when it comes to what it takes- Owning a business is easy…on
paper. Making it profitable is all about hard work. Don’t kid yourself.
C. Weigh you risk carefully and minimize it the best you can – Some opportunities require very
little money up front to get started, meaning the relative risk should you fail is significantly less.
Other opportunities can bhow to undertake feasibility studH
D. How to undertake feasibility study.
 Step One: Conduct a Preliminary Analysis.The primary purpose of the preliminary
analysis is to screen project ideas before extensive time, effort, and money are
iinvested.
 Step Two: Prepare a Projected Income Statement Anticipated income must cover direct
and indirect costs, taking into account the expected income growth curve.
 Step Three: Conduct a Market Survey a good market survey is crucial. If the planner
cannot perform this survey, an outside firm should be hired.
 Step Four: Plan Business Organization and Operations at this point, the organization and
operations of the business should be planned in sufficient depth to determine the
technical feasibility and costs involved in start-up, fixed investment, and operations.
  Step Five: Prepare an Opening Day Balance Sheet the Opening Day Balance Sheet should
reflect the practice’s assets and liabilities as accurately as possible at the time the
practice begins, before the practice generates income.
 Step Six: Review and Analyze All Data this review is crucial. The planner should
determine if any data or analysis performed should change any of the preceding
analyses. Basically, taking this step means “Step back and reflect one more time.”
 Step Seven: Make “Go/No Go” Decision all the preceding steps have been aimed at
providing data and analysis for the “go/no go” decision. If the analysis indicates that the
business should yield at least the desired minimum income and has growth potential, a
“go” decision is appropriate.

Quiz 2.
1. Discuss or explain which form of business organization would you be willing to
establish? Why would you choose that kind of business organization?
 Partnership If I’m establishing a partnership, it is extremely important to make sure
everything is outlined in case things go sour, especially when starting a business with a
loved one or friend. Seek legal advice to create a partnership operating agreement to
hash out all business decision possibilities, including succession or exit plans.
2. How does the legal requirements or basic requirements for starting a business, differentiated for
each form of business organization.
 A sole proprietorship is a firm that is owned by one person. From a legal perspective,
the firm and its owner are considered one and the same. On the plus side, this means
that all profits are the property of the owner (after taxes are paid, of course), In a
partnership, two or more partners share ownership of a firm. A partnership is similar to
a sole proprietorship in that the partners are the only beneficiaries of the firm’s profits,
but they are also responsible for any losses and debts. Partnerships can be especially
attractive if each person’s expertise complements the others and the last is ,A difference
between a corporation on the one hand and a sole proprietorship and a partnership on
the other is that corporations involve the separation of ownership and management.
Corporations sell shares of ownership that are publicly traded in stock markets, and they
are managed by professional executives.
3. In terms of taxation, discuss or explain the nature of taxation for each form of business
organization.
 Corporate Taxation: Corporate profits are taxable to the corporation when thet are
distributed in the form of dividends, but not when they are reinvested in the corporation
as retained earnings. The traditional corpotation shareholder actual pays tax twice on his
or her dividends, once at the corporate levwl, another at the taxpayer / Sharesholder .
Not cool