Describe the basic features that distinguish the three classic varieties of business ownership: single proprietorships, basic partnerships and C companies.
~Sole proprietorship is a business that’s owned and maintained by one individual. Earnings of the business are treated as cash flow and debts that arise happen to be personal debts. It really is the most common type of business organization in USA.
~Standard partnership: In this sort of business all companions have right to take part in management of the organization and share any income or losses. There is no limit on number of partners but usually it’s two.
~C corporation is a legal entity, separate and distinctive from its owners. It’s owned by stockholders. Its mission and aim are established by table of directors and plank of directors is selected by stockholders to safeguard their interests.
Compare and contrast advantages and disadvantages of single proprietorships and basic partnerships.
~Both are easy to form, have tax advantages, and unlimited liability.
~General partnership includes a more robust financial base than sole proprietorship.
~On the other hand, general partnership can be destroyed easier than sole ~proprietorship because of disagreements between partners.
~ Another disadvantage in sole proprietorship is normally that workload and obligations are using one person while in partnership it’s shared.
What advantages help describe why nearly all large corporations are arranged as C companies?
~Companies can raise huge amount of financial capital
~It’s easy for stockholders to withdraw from possession or promote shares of stock
~Stockholders include limited liability. They aren’t personally responsible for the debts of the business.
What steps are involved in starting a general corporation?
~Requires filing variety called the article content of incorporation, with a particular state agency.
~Pay filling charges and build corporate bylaws-basic the essential rules governing what sort of corporation is structured and how it manages its organization.
~Companies also choose corporation friendly claims, because not all states are friendly and bill a lot of money.
How can be a corporation’s panel of directors chosen? Clarify the role the plank takes on in a corporation’s management.
~ Relating to corporate bylaws stockholders elect board of directors that they count on to manage enterprise and protect their passions.
~Table of directors establishes the corporation’s objective and sets its broad objectives.
~Table of directors after that assigns the principle of executive officer and different corporate officers to control company.
Explain how S companies, statutory closed corporations, and nonprofit corporations change from C corporations.
~S company: IRS does not tax earning separately, can have no a lot more than 100 stockholders, each stockholder have to be U.S. citizen or everlasting resident.
~Statutory close company: Does not have to elect a plank of directors or carry annual stockholders meetings, amount of stockholders are limited by 50, stockholders can’t sell their shares to public without first selling to existing owners, not all states allow this kind of corporation.
~Nonprofit company: Has members but not stockholders, cannot contribute cash to a political campaign, must keep accurate data, income are exempt from federal and state profit, make taxes deduction for people who contribute money or real estate.
What will be the three several types of corporate mergers? What is the rationale for each type?
~Horizontal merger: Mix of companies in the same market.
~Vertical merger: Combination of companies with buyer-seller romantic relationship.
~Conglomerate merger: Combination of unrelated companies.
Compare an S company with a restricted liability company. Why do you consider limited liability companies are currently popular than S corporations?
~While S company has limited numbers of owners, Limited Liability Enterprise can have any number of owners. Unlike S company, owners of LLC can be foreign investors and additional corporations.
What is a business format franchise? What are the functions of the franchisor and franchisee in this set up?
~Business format franchise is an agreement in which the franchisee pays for the proper to use the name, trademark and must operate business according to the rules and concepts of franchisor.
~Franchisor is certainly owner and has to train and offer support franchisee; responsible for name brand recognition.
~Franchisee- has right to use franchisors name, trademarks, and patents; must follow methods and all of the rules of franchisor; attend training meetings
What are the key advantages and disadvantages of franchising plans for the franchisee? For the franchisor?
~Advantages for franchisee: much less risk, training and support from franchisor, much easier to borrow funds from a bank
~Drawbacks for franchisee: Costs are very high, very little control, have to sell only what organization sells, risk-not all corporations live with their promises, growth challenges
~Advantages for franchisor: can expand the business to bring extra income without using own money.
~Drawbacks for franchisor: irresponsible behavior of franchisee cans expense companies success.
Small Organization and Entrepreneurship:
Economic Rocket Fuel:
Review the benefits a business testmyprep.com owner might seek in starting a fresh business. Which rewards are most appealing to you? Why?
~Greater financial achievement, independence, flexibility, obstacle, survival.
~The benefits that appeal if you ask me are independence, overall flexibility, and financial success.
Do you recognize the entrepreneurial personality features in yourselves? Which ones? Do you think it is possible for a person to build up the characteristics that he or she lacks? Why or you will want to?
~Yes, I have handful of entrepreneurial personality characteristics and they are self-reliance, confidence, strength, and tolerance of failing.
~I think it is hard but possible for a person to build up skills she or he lacks. It all depends upon how bad that person really wants to learn new expertise that she or she doesn’t have.
What role does inability quite often play in entrepreneurial victory? What can an entrepreneur gain from failure?
~Entrepreneurs see inability as an opportunity to learn and succeed.
Compare the chances and threats that smaller businesses face. Which opportunities are most compelling? Which threats are virtually all intimidating? Why?
~Opportunities: Industry niches, personal costumer services, lower overhead costs, technology.
~Threats: Risky of failure, insufficient knowledge and experience, too little money, bigger
~Greater regulatory burden, higher health insurance costs.
~Opportunity that compelling is normally personal customer service because with it small business owner can build personal marriage with a customer. Another opportunity that is compelling is lower overhead costs because no one wants to spend large amount of money and wants to spend as less as possible.
~The biggest threat that is intimidating is high risk of failure. When somebody starts a business, they wants to succeed rather than to fail. Folks are scared of
loosing regardless if they are tolerant to failure. Those that tolerant to failing don’t give very easily up like others carry out.
Review this is of niche marketing expert, and cite three types of niche internet marketers. How has technology affected niche marketing?
~Market niche is a tiny segment of market with fewer competitors compared to the market all together and tend to be more appealing to small firms.
~Organic and natural cosmetics, Google, E-bay.
~Technology plays incredibly important function today, because net helped persons to open innovative businesses and at the same time create more customers. It really is good for businesses because they use less overall and grow faster.
If you were to launch a fresh business, would you begin from scratch, buy an established independent business, or buy a franchise? Why?
~I would launch a new business from a scratch. I understand there are a lot of risks but I would want to be my very own boss and produce my decisions.
How would you convince friends and family to support your new business launch? What sort of assurances would they need? What could you do to keep the funding relationships professional?
~Initially of all I’d educate myself, study from others, gain encounter, and the main create a business system.
Beyond personal resources, what exactly are other funding alternatives for small businesses? Why don’t more entrepreneurs tap into these resources?
~Bank loans, angel buyers, and capital raising firms.
~The explanation that entrepreneurs are trying to avoid other resources besides personal is because they cause more head aches. Personal resources are most likely the easiest to cope with.
What will be the key contributions of small company to the U.S. economy? Rank the benefits when it comes to importance, and provide the reasons for your rating.
~Small businesses play very important part in U.S. economy because they create new jobs, create new improvements at twice the rate of their big organization counterparts, and they tend to find prospects by offering products or services where big corporations don’t.
What factors take into account the dramatic dissimilarities in entrepreneurship rates around the globe? Do you consider entrepreneurship will continue to expand worldwide? Why or why not?
~Key elements that plays important part in different entrepreneurship rates all over the world are national per capita income, entrepreneurs’ opportunity costs, and just how much cultural and political environment supports entrepreneurs.
Building Profitable Connections with Your Customer
How does the American Advertising Association define marketing? How can marketers deliver value with their customers over the future?
~The American Association defines advertising as an organizational function and a couple of processes for creating, interacting, and providing value to clients and for managing consumer relationships with techniques that benefit the organization and its stakeholders.
~In order to provide value to clients over the long term marketers must to fill buyers need and in the manner exceed customer’s expectations.
What will be the four different kinds of utility that marketing experts can provide? Give an example (not from the reserve) of something that delivers each type of utility.
~Form utility: iPhone
~Period utility: Walgreens 24/7
~Place utility: Cafeteria on campus
~Ownership utility: Laptop
What will be the key categories of non-traditional marketing? Do you anticipate these areas to expand over another decade? Why or you will want to?
~People, place, celebration, and idea marketing.
~I feel that these areas will expand over 10 years because people’s interests change with each technology. Technology as well changes and grows.
How has advertising evolved over time? How have current occasions, economics, and way of life influenced thinking about marketing?
~Advertising developed through unique phases: production era, selling era, marketing era, and relationship era.
~During marketing era idea of marketing was born and today it’s growing increasingly more. Now, customer satisfactions started to be centerpiece of advertising.
What are the key characteristics of a higher potential target market? May be the biggest target market always the best? Why or you will want to?
~Size: need to have enough people to aid business.
~Profitability: willingness of a customer to pay more than the cost of generating product.
~Accessibility: target must be reachable
~Limited competition: search for markets with limited competition
~I think that bigger market is generally very good because there are additional people to support business and bring extra profit to the business. Company can also use that cash to build bigger marketplace by creating new products.
What are the several methods to segment a consumer industry? Does it make sense to use multiple segmentation variable? Why or why not?
~Demographic: dividing market predicated on peoples age, money, ethnicity, and gender.
~Geographic: dividing marketplace into smaller groups depending where costumers live.
~Psychographic: dividing by teams predicated on costumer interests, ideals, attitudes, and lifestyles.
~Behavioral: dividing into groups based how people respond to the products
~It does make sense to use multiple segmentation, for example, demographic and psychographic.
Describe the four factors of the marketing mix. What function does each component play in delivering benefit to customers?
~Product approach: creating name, product graphic, package design, customer service, guarantees, new product development, plus much more.
~Pricing strategy: price should be fair
~Distribution approach: delivering a product to the proper people, in the proper quantities, at the right time
~Promotion technique: find effective way to promote product.
~All of the four factors play very important function in delivering value to customer.
What will be the five key measurements of the advertising environment? How do marketers stay up to date with changes in each place?
~Competitive, economic, interpersonal/cultural, technical, political/legal www.testmyprep.com.
~To stay on the surface of the things entrepreneurs must monitor each element of marketing environment and respond quickly and efficiently to change.
Outline the methods in the consumer decision-making process. How can the marketer affect each step?
~Recognition: recognize need
Information Search: previous knowledge with brands, family, friends
Evaluation of Alternatives: cost, quality
Purchase decision: buys item since it was on sales and return policy is great
Post purchase behavior: satisfied or not
~Marketing expert can influence each step by learning cultural, cultural, personal, and psychological lifestyle of customers.
What are the key differences between principal and secondary data? Compare the benefits and drawbacks of each.
~Secondary info is existing data that marketers gather or invest in for a research project. Primary info is new data that entrepreneurs gather for a particular research project.
~Secondary data: Advantages- low cost
Disadvantages- might not exactly meet specific have to have, outdated, open to competitors
~Primary data: Advantages-customized to meet up specific need, fresh and new, unavailable to anyone
Delivering More Value
Review the marketing explanation of product. Why do you think marketers define product hence broadly? How does this is of product affect top quality?
~Product is anything that company offers to satisfy customers wants and wants; including both products and services.
~I think marketing experts define product thus broadly because it is made for one purpose simply- to fulfill customer, whether it’s an excellent or service. Thus, when consumer buys something he or she buys attributes linked to the product.
~If something satisfies customer it’s high quality for that buyer and if buyer dissatisfied by product than its bad top quality for her or him.
Think of three numerous services that you use regularly (e.g. a cafe, a dental office). How does the service provider suggest in advance that the program will be top quality?
~Restaurant: advertisement, friendly staff
~Hair stylist: properly designed salon, professional look
~Dental business office: friendly and helpful staff
ServiceDraw a merchandise and providers spectrum, and determine where to place the following items along the spectrum: a nightclub, a fresh motorcycle, a designer footwear store, an Internet search engine, a fresh snowboard, and a picture taking class. What exactly are the reasons for your alternatives?
new motorcycle designer boot store internet search engine
new snowboard night golf club photography class
~New motorcycle and snowboard are pure goods.
~Designer shoe retail store and night golf club are service with products.
~Internet search engine and photography class are pure service.
What will be the marketing benefits associated with identifying you see, the product, the core product, and the augmented product?
~Actual product: using the product itself and its own uniqueness
~Core item: satisfies customers needs
~Augmented product: further good or assistance to sharpen competitive border (warrantees, manuals, etc.)
List five types of products that are commonly purchased as either organization products or consumer products. How would the classification affect the marketing strategy?
~Computer, phone, desk, truck, cleaning service
~Consumer goods purchased for personal make use of and business products purchased to produce another product or service.
~Customer classifications are convenience item, shopping products, specialty, products, and unsought products.
~Business product classification are installations; accessory equipment; maintenance, service, and operating products; recycleables; components and processed resources; and business services.
Why are products and product combine decisions so important? What exactly are the risks of earning poor decisions relating to these factors?
~Product series and product mix are incredibly important if company wants to make good profit by making customer happy.
~Poor decision relating to these factors may cause enterprise to loose its gains.
Would it ever make sense for a firm to give you a new products that they understand would cannibalize an existing line? Explain your solution.
~I don’t believe it make any perception, especially if provider knows that that brand-new product line will cannibalize existing brand why actually create it. Firm can loose lots of money.
Think of one of your favorite brand names. Does the brand name fit the characteristics of an outstanding name? Do you think it concerns? Why or you will want to?
~100% Pure. Yes, I believe brand name fits characteristics of a fantastic name because it’s brief and easy to remember.
~I do not think it’s essential for a company to match characteristics of a great name because another enterprise I really like named Dr. Hauschka. The brand is certainly hard to pronounce and hard to memorize but I really like Dr. Hauschka’ products.
What are the three different degrees of product advancement? Which is most prevalent? Can a organization survive permanent with only continuous innovation? Why or why not?
~Discontinuous Invention, dynamically continuous innovation, constant innovation.
~I feel that most common are constant innovation and dynamically continuous innovation.
~I believe that it is possible to survive permanent with only continuous technology because the aim of it to produce product much better than competitor. For example, Lifeway kefir provider it’s getting better and better adding even more products different flavors and so on.
What are the four stages of the merchandise life cycle? How does product life cycle stage impact online marketing strategy?
~Introduction, Expansion, Maturity, Decline
~Life cycle support marketers plan effective strategies for existing goods and identify successful categories for services.
Distribution and Pricing: Right Product, Right Person, Ideal Place, Right Price
Explain the difference between channel of distribution and physical distribution.
~Channel distribution may be the path that a product takes from the producer to the buyer, while physical distribution is definitely you see, the movement of items that path.
Explain the purpose of channel intermediaries in the merchandise distribution process. Why is their role important?
~Channel intermediaries are distribution organizations that help to move products from factories to the consumers.
How do intermediaries put value to the products they distribute? Find an example of a distributor that offers each one of the six types of utility.
~They add value by reducing the amount of transactions and the involved costs required for merchandise to flow from producer to consumer. Distributors can also add form, period, place, ownership, info, and service utilities.
What is the essential difference between merchant wholesalers and brokers/brokers? What are the risks and advantages of each approach for makers?
~Merchant wholesalers take legal title to the goods they distribute and decrease the risk for maker that the products may be damaged or stolen. Disadvantage for producers is that marketing strategies and pricing participate in wholesaler.
~ Agents and agents don’t take legal ownership of the products they distribute. Since agents and brokers don’t possess legal ownership of goods, producers at higher risk, but they have more control over the merchandise.
Do you think that the "shoppertainment" method of retailing will continue to grow? Why or why not?
~Yes, I defiantly think that shopping and entertainment method of retailing will continue to grow because it’s more fun for people to visit places where they can have fun or their kids. Also if prices are likely to go up, people will still to come quickly to such places. Even I would like to go to spots like Hershey Chocolate Globe.
Explain the distinctions among intensive, selective, and exclusive distribution strategies. Name an example of each that isn’t listed in the written text.
~Intensive distribution involves placing products in as many stores as likely or stores themselves in many places as possible.(gas stations)
~Selective distribution means putting product only in recommended stores and establishing shops in limited locations.(Residence Depot)
~Exclusive distribution means build one retail store in a given area.(Ikea)
Who benefits virtually all from collaborative source chain associations? Explain your answer.
~Companies that specialize in helping others manage the source chain. Many companies considered supply chain to build a competitive edge but because of complication many firms decide to outsource challenge to authorities.
Why is cost such a hard variable for marketers to control? What elements must they consider in placing prices?
~Cost is hard for entrepreneurs to control because people have limited sum of money, so they can’t set high prices. The prices have to be as low as possible so that persons would be willing to buy, but as well marketers, when determining the ultimate value, must consider their costs, competitors, investors, taxes, and product strategies.
~Building profitability, boosting quantity, matching the competition, creating prestige
Driving volume is a key pricing objective for many businesses. Find a good example of a marketing expert that uses each of the volume oriented pricing approaches. Do you consider this approach is effective? Why or you will want to?
~I don’t know any internet marketer that uses each of the volume oriented pricing approaches. I really do not think that this process would be effective.
How does a breakeven evaluation help marketers determine the best price for their products? How many other factors is highly recommended? Why?
~It’s a process that helps determine the number of units firm must sell to covers all costs.
~At breakeven point firm doesn’t make any income so, breakeven evaluation helps marketers get a perception where are they standing. So, to create a profit organization needs consider factors: increase prices, decrease adjustable costs, decrease set costs.
Marketing Advertising: Delivering High-Impact Messages
How has marketing promotion evolved in the last decade? How features technology contributed to the improvements?
~Advertising is marketing conversation that influences consumers by informing, persuading, and reminding them about product. The effective advertising builds strong romance between customers and corporations, drawing customers back to the company again and again.
~Technology has empowered customers to select how and when they want to connect to media.
Why is integrated marketing communication such a obstacle for marketers? How do marketers encourage teamwork and coordination?
~Because consumers combine messages from all options to form unified impression of a product and marketing expert can’t control every therapeutic massage consumer sees or hears about their product.
~Sturdy teamwork must begin from the very best. Everyone who manages the advertising massage needs to have information about the customer, the product, your competition, the market, and the strategy of the business. When all parties have access to the same info, they will be on a single page.
Do you think a rational or an emotional premise increases results for marketing promotion? Why? Does your remedy change across product types? Use examples to aid your perspective.
~I feel that both rational and mental premise works for advertising promotion, it’s just will depend on the product. It’s considerably more interesting when both are there and persons like humor.
Why will be the key risks and the potential benefits of product placement in both films and television? Think this promotional program will continue to grow? Why or why not?
What ethical issues have emerged as internet marketers explore new means of grabbing consumer attention? Work with examples to aid your points.
Do you think that cable television advertising spending will sooner or later eclipse network television advertising and marketing spending? Why or why not?
Given that each kind of media offers you strengths and disadvantages, what factors should you consider in creating a media plan for a specific product?
What are the benefits and drawbacks of publicity? Could it be ethical for marketers to attempt to influence the media? Explain your answer.
What will be the six phases in the selling process? What role does each stage take up? Which stage do you think is most significant? Why?
How is it possible to determine the proper promotional mix for a specific good or services? What key factors should you consider?