| A | B |
|---|
| entrepreneur | person who assumes the risk of starting a business |
| Expand | sometimes a partnership is used to do this after beginning as a sole proprietorship |
| Fail | New businesses do this because of financial reasons as well as not being suited to it |
| Business plan | This helps the owners to see the risks and responsibilities of owning a business |
| Business owners | Whether a partner or proprietor they must find a way to finance the business |
| Ownership | The form of this that is chosen directly affects the financial responsibility the owner will have to assume |
| Any age | The age when most successful entrepreneurs start their business |
| Financial plan | This part about income, expenses, profits, should be included in a business plan |
| owner | who gets all of the profits in a sole proprietorship |
| Sole proprietorship | most common form of business ownership |
| Creditors | These people have a legal claim to the businesses assets before the sole proprietor |
| balance sheet | capital shown on this statement shows what the businesses worth is |
| emergencies | sole proprietorships often do not have enough funds for these immediate situations |
| two | partnerships must have at least this many people but could have even 10 or more |
| Corporations | these pay significantly more taxes than sole proprietorships and partnerships |
| other partner | If one partner does not pay the debts this is who must |
| Personal assets | a disdvantage of both partnerships and sole proprietorships is that they both can lose these |
| All | the number of partners who are responsible if one of the partners enters into a contract |
| Dies | If one partner does this the partnership must end |
| Withdrawl | It is somewhat difficult to do this, or get out, for a partner in a partnership |
| Artificial | The trade name of a partnership could be their names or this type of name |
| Years | The typical business can expect a profit after many months or even this |
| Hours | entrepreneurs work very long and hard these |
| Equation | this in the balance sheet is assets minus liabilities equals capital |
| Interchangable terms | Capital, net worth and equity are this |
| Skills | one of the reasons why proprietors fail within a short time is that they lack these |
| Managed | a business suited to a sole proprietorship is one that can be this by the owner or who they hire |
| More capital | An advantage of a partnership over a proprietorship is this availability of this financially |
| Limited | In this type of partnership the limited partner is only liable for what they invest |
| Trade name | no matter what a business calls itself, this does not reduce the owner's liability to creditors |
| business plan | a written document that describes how to achieve the goals of the business |
| Proprietor | the sole owner of a business |
| Assets | BUSINESS property is an example of these |
| liabilities | money owed by a business |
| one half | this is the amount of businesses that close within 5-6 years |
