Domain 1 Lesson 1

6 | Domain 1 Lesson 1 Entrepreneurship and Small Business V.2 Project Workbook, First Edition
Fill-in-the-Blanks
Instructions: While watching Domain 1 Lesson 1, fill in the missing words according to the information presented by the
instructor. [References are found in the brackets.]

1. The key objective of a small business owner is to generate . [Entrepreneurship and Small Business]

2. Entrepreneurs are willing to take on new opportunities and unknown to grow their businesses
rapidly. [Entrepreneurship and Small Business]

3. Tangible items that require pick-up or delivery are products. [Classify Types of Businesses]

4. When a purchases an item from a business, it is a business-to-consumer transaction. [Classify

Types of Businesses]

5. are for-profit corporations with limited liability. [Business Legal Structures]

6. are ideal for international businesses. [Business Legal Structures]

7. The oversees daily operational and administrative functions. [Business Roles

and Responsibilities]

8. A votes on the management of a company. [Business Roles and Responsibilities]

9. employees are paid a fixed amount each pay period. [Business Compensation Structures]

10. Businesses can compensate employees for work they produce when being paid by . [Business
Compensation Structures]

11. in addition to a lower salary. [Business Compensation Structures]

12. During the stage of the business life cycle, a company is regularly taking on new customers and
starting to generate a consistent income. [Business Life Cycle Stages]

13. The owner may decide to sell their ownership in the company during the stage. [Business Life
Cycle Stages]

14. The five elements of the design thinking process are: empathize, define, ideate, , and test.
[The Design Thinking Process]

15. allows one to see and experience a customer's perspective. [The Design Thinking Process]

16. The design team creates multiple inexpensive versions of a product, known as .
[The Design Thinking Process]

7 | Domain 1 Lesson 1 Entrepreneurship and Small Business V.2 Project Workbook, First Edition
Small Business Types Project Details
Project file
Small business owners and entrepreneurs are similar but have some key N/A
differences. Both invest time and money into a small business. A small business
Estimated completion time
owner focuses on generating profits and deals with known risks. Entrepreneurs
5 minutes
tend to grow fast and take on new opportunities and unknown risks. A franchise
is a licensed business that has established operations, products or services, and Video reference
branding. This business requires more money upfront but has less risk involved. Domain 1
Topic: Entrepreneurship and Small
Businesses sell products and services. A product is a physical item that one Business Ownership
holds, such as clothing, toys, and food. A service is intangible. Car detailing, Subtopic: Entrepreneurship and
Small Business; Classify Types of
computer repairs, and lawn maintenance are all services. Services need some
Businesses
type of training to perform. Products and services are sold in physical stores or
using e-commerce. There are shipping costs associated with physical products. Objectives covered
Digital products are instantly available, though it can be challenging to show 1 Entrepreneurial and Small Business
Concepts
value. When a customer makes a purchase from a business, it is a business-to-
1.1 Identify the foundational
consumer (B2C) transaction. When a business makes a purchase from another concepts of entrepreneurship and
business, it is a business-to-business (B2B) transaction. small business ownership
1.1.1 Define entrepreneurship and
Purpose small business
1.1.2 Classify types of businesses
Upon completing this project, you will better understand small businesses and
their products and services. Notes for the teacher
Review the differences between a small
Steps for Completion business owner, an entrepreneur, and a
franchise.
1. Name one benefit of a franchise.

a.

2. Label the items as either a product or a service. Use P for product and S for service.

a. Muffins

b. AC repairs

c. Toilet paper

d. Jewelry

e. Web designs

f. Couch

g. Guitar lessons

8 | Domain 1 Lesson 1 Entrepreneurship and Small Business V.2 Project Workbook, First Edition
Legal Structures Project Details
Project file
There are various legal structures to choose from when creating a business. An S N/A
corporation and C corporation have specific tax advantages and limited liability.
Estimated completion time
They have shareholders, a lower tax rate, and follow strict qualifications to
5 minutes
create. A limited liability company (LLC) has a personal tax rate. They are not
personally liable for the company’s debt. A sole proprietorship or partnership is Video reference
responsible for all debt and they are easy to create. The last legal structure, non- Domain 1
Topic: Entrepreneurship and Small
profit organizations, have specific tax exemptions.
Business Ownership
Subtopic: Business Legal
Purpose Structures
Upon completing this project, you will better understand the legal structures Objectives covered
available to businesses. 1 Entrepreneurial and Small Business
Concepts
Steps for Completion 1.1 Identify the foundational
concepts of entrepreneurship and
1. Match the following characteristics to the appropriate legal structure. small business ownership
1.1.3 Identify various legal
S corporation Sole proprietorship structures of a business
Partnership LLC
Non-profit C corporation Notes for the teacher
Review the various legal structures with
students.
a. No ownership, no US federal
taxes

b. Best for international business even with being double-taxed

c. Easy to create but comes with unlimited liability

d. Lower tax rate that prevents the company from being double-taxed

e. Ideal for a single owner seeking low risk

f. Shared financial backing

9 | Domain 1 Lesson 1 Entrepreneurship and Small Business V.2 Project Workbook, First Edition
Roles and Compensation Project Details
Project file
There are many roles and responsibilities within a business. In a larger company, N/A
the roles are spread among multiple people. In a small business, the roles may
Estimated completion time
be filled by a few people. Some common roles are the Chief Executive Officer
5 minutes
(CEO), Chief Financial Officer (CFO), and Chief Operations Officer (COO). These
are the highest-ranking employees and make the major decisions for a Video reference
company. The owner or founder is the only role that is not interchangeable. Domain 1
Topic: Entrepreneurship and Small
Stakeholders are individuals or groups that have an interest in the success of a
Business Ownership
company. They might serve on the board of directors. Stockholders have a Subtopic: Business Roles and
vested interest in a company, meaning they pay for part of the ownership. Responsibilities; Business
Employees are given specific roles or tasks to complete. Each role is important Compensation Structures
to the success of a company.
Objectives covered
No matter the role, all employees receive compensation. There are many forms 1 Entrepreneurial and Small Business
Concepts
of compensation, but the most common are hourly and salary. A few others of
1.1 Identify the foundational
note are commission, piece work, and equity. concepts of entrepreneurship and
small business ownership
Purpose 1.1.4 Identify roles and
responsibilities within a business
Upon completing this project, you will better understand the roles in a business. 1.1.5 Define business
compensation structures
Steps for Completion
Notes for the teacher
1. Match the responsibility with the corresponding role in a business. Review roles, responsibilities, and
compensation in greater detail if time
CEO Founder permits.
Stakeholder COO
CFO Stockholder
a. Creates the company

b. Oversees company finances

c. Owns stock in the company

d. Reports to the board of directors

e. Oversees daily operational and administrative functions

f. Has a vested interest in the success of the company

2. Match the business compensation type with the corresponding definition

Hourly Commission
Salary Equity
a. Non-cash compensation

b. Set rate of pay for hours worked

c. Usually found in sales roles

d. Set amount of pay in a given period

10 | Domain 1 Lesson 1 Entrepreneurship and Small Business V.2 Project Workbook, First Edition
Business Life Cycle Stages Project Details
Project file
There are seven stages in a business life cycle. Each stage represents a different N/A
phase of growth and expansion for a business. The first stage is existence, when
Estimated completion time
a business begins. After this initial period is the survival stage. In this stage,
5 minutes
income and customers begin to grow. Once a business is economically healthy,
it moves to the success stage. In the take-off stage, an owner decides whether Video reference
to continue growing the business or to sell the business. During the resource Domain 1
Topic: Entrepreneurship and Small
maturity stage, the owner can separate financially and operationally from a
Business Ownership
business. Pivot or persist is next as an owner decides if they will continue to Subtopic: Business Life Cycle
grow the business into a large company or pivot to a new project. Finally, an Stages
owner may choose to sell their company in the exit plan stage.
Objectives covered
Purpose 1 Entrepreneurial and Small Business
Concepts
Upon completing this project, you will better understand the stages of a 1.1 Identify the foundational
business life cycle. concepts of entrepreneurship and
small business ownership
1.1.6 Define business life cycle
Steps for Completion
stages
1. List the correct order of the business life cycle stages: Notes for the teacher
Review the business life cycles stages
a.
with students.
b.

c.

d.

e.

f.

g.

2. Michael owns a small but profitable tech company. He has been approached by a larger company that wants to
purchase his business. In which business life cycle stage is Michael?

a.

3. Bill just started a new graphic design business. He is advertising online and trying to gain customers. He just
finished working with his first client. In which business life cycle stage is Bill?

a.

4. Stephanie started a new flower shop last year. She has a good customer base and money coming in. In which
business life cycle stage is Stephanie?

a.

11 | Domain 1 Lesson 1 Entrepreneurship and Small Business V.2 Project Workbook, First Edition
The Design Thinking Process Project Details
Project file
As a business owner, it is important to keep the needs of customers in mind. N/A
The design thinking process has five elements for a design team to develop
Estimated completion time
products that meet customers’ need. These elements are: empathize, define,
5 minutes
ideate, prototype, and test. The stages typically flow in this order, but the team
can return to previous stages as needed. Identifying the needs of customers is Video reference
the first stage. Next, the team identifies and defines any problems customers are Domain 1
Topic: Entrepreneurship and Small
facing. The team creates solutions to the problems in the ideation stage. The
Business Ownership
design team will create prototypes to test the product. In the final stage, the Subtopic: The Design Thinking
design team refines the final product. Process

Purpose Objectives covered

1 Entrepreneurial and Small Business
Upon completing this project, you will better understand the design thinking Concepts
process. 1.1 Identify the foundational
concepts of entrepreneurship and
Steps for Completion small business ownership
1.1.7 Identify elements of the
1. List the correct order of the design thinking process. design thinking process

a. Notes for the teacher

Review the design thinking process with
b. students.

c.

d.

e.

2. During which stage of the design thinking process will the design team create multiple inexpensive product
versions?

a.

3. During which stage of the design thinking process is a problem statement formed?

a.

4. Which stage of the design thinking process involves learning about customers' challenges?

a.

12 | Domain 1 Lesson 1 Entrepreneurship and Small Business V.2 Project Workbook, First Edition