1. What is Entrepreneurship?
Section 4.1
What is Entrepreneurship?

2. What is Entrepreneurship?
An entrepreneur is someone who ___.
The risks can be ___, but the rewards can also be ___.
continued

3. Advantages of Entrepreneurship
You’re in ___.
There is great ___.
Entrepreneurship can lead to a ___.

4. Disadvantages of Entrepreneurship
There is ___.
Entrepreneurs often ___.
___ can be stiff.
There are no ___of success.
Almost ___of every ___new businesses ___within their first ___.

5. ETHICS in Action Becoming the Competition THINK ABOUT IT
You have been the assistant manager of a coffee shop for the past five years and have made friends with many of the customers. You recently inherited a large sum of money and are thinking about opening up a coffee shop of your own. There is a perfect space available in a shopping center around the corner from your current place of work, and you think many of the customers that you have befriended would follow you there.
THINK ABOUT IT
Is it fair to open up a shop in direct competition with your current shop? Why or why not? Are there any other solutions? ___

6. Traits of Entrepreneurs
If the traits described below don’t __ traits you see in yourself, you can __ them.
Motivation
Successful entrepreneurs are __ self-motivated.
They keep themselves motivated by setting __ goals.
Entrepreneurs make and follow a __ for __ their goals.

7. Traits of Entrepreneurs cont
Sight and Foresight
Entrepreneurs recognize __ .
They see __ and find a way to build __ on them.
Successful entrepreneurs constantly __ and their customers’ __ in order to achieve success.

8. Traits of Entrepreneurs cont
Decision Making
Entrepreneurs make business decisions __ , and the decisions must be __ ones.

9. Traits of Entrepreneurs
Graphic Organizer
4.1
Traits of Entrepreneurs
Recognize
opportunities
Desire
achievement
Have high
energy
Want to
control
destiny
Successful
Entrepreneurs
Take
risks
Desire to
earn profit
Are
determined
Are
enthusiastic
Have self-
confidence
Chapter 4 • Entrepreneurship
Succeeding in the World of Work

10. CAREER CHECKLIST
When Starting Your Own Business…
Talk to __ who have started their own businesses, especially if they work in your __ of interest.
continued

11. CAREER CHECKLIST
When Starting Your Own Business…
Take a good look at __ . Do you possess the __ that an entrepreneur needs? If not, brainstorm ways that you can start developing these important qualities.
continued

12. CAREER CHECKLIST
When Starting Your Own Business…
Perform further research about __ and create one for your business.
Be __ —sometimes the __ idea can be a booming success in the business world.
Investigate the __ business __ of your own community.
continued

13. CAREER CHECKLIST
When Starting Your Own Business…
Brainstorm with __ and find a __ that you work well with.
Be __ ! It may take some time for your plan to become a success.

14. Key Concept Checkpoint
SECTION 4.1 REVIEW
Key Concept Checkpoint
Comprehension
Why might entrepreneurship offer greater job satisfaction than working for someone else? ____

15. What is Entrepreneurship?
End of Section 4.1
What is Entrepreneurship?

16. Section 4.2
Ways of Becoming a Business Owner

17. Ways of Becoming a Business Owner
The four main ways to have your own business are to:
start a __ business,
buy an __ business,
buy a __ , or
take over the __ .

18. Starting a New Business
If you start a new business, you will have challenges as well as rewards.
The Challenges
New businesses require more __ than established businesses.
Start-up costs are the __ involved in going into business. Examples are: __
Have to convince __ to loan you money.
It’s is __ and may not succeed.
The Rewards
Some of the rewards of starting a new business are:
You don’t inherit a __ so you don’t have to worry about an existing __
You can try fresh ideas and build your business your __ .
You get __ from knowing you built the business yourself.

19. Buying an Existing Business
A successful business might be for sale because the owners are __ or entering a new business or because the business is so __ , the owners can’t __ anymore.
continued

20. Buying an Existing Business
There are many reasons why an unsuccessful business might be for sale.
Take a good look at the __ for a business’s failure.
Determine whether the business’s __ can be fixed, and at what __ .
You can often purchase a failing business at a reduced __ .
continued

21. Buying an Existing Business
A Fast Start
Buying an existing business can put you several steps ahead.
You can save on start-up costs by taking advantage of the previous owner’s __ , such as a lease.
A lease is a contract to use something for a __ .
You may not have to worry about buying or renting __ .
The person selling the business might be a good source of __
The goodwill, or __ , of customers is one of a business’s most __ .
You may benefit from its established __ .

22. Buying an Existing Business
Drawbacks
Some of the problems that might come with an existing business are:
The __ may be poor.
Competition may be stiff.
The market outlook, or __ , may have changed.
The building or equipment may need expensive __ or replacement.
The business may have a __ .
continued

23. Buying a Franchise A franchise is the __ .
Many __ restaurants are franchises.
When you buy a franchise, you are actually buying the __ another company’s products.
In addition to paying for the franchise, you will continue to __ of your __ to the parent company.
You must follow the parent company’s __ .
Guidelines often dictate how to __ the goods or services.

24. Buying a Franchise Advantages/Less Risk Disadvantages/Less gain
__ product name,
established management systems,
business __ and customer __
training and support __ ,
__, and
financing.
Disadvantages/Less gain
A franchise may be less __ , because you pay a portion of your __ to the parent company.
Since you didn’t __ the company, there may also be __ .
continued

25. Taking Over the Family Business
Taking over the family business can be a shortcut to __ .
Advantages
Your relatives might help you __ the business.
Family members tend to be more __ and __ each other.
Family members working as a __ can achieve more than individuals.
Relatives can __ the business.
Customers are likely to give __ and goodwill to an owner who is __ they are accustomed to doing business with.
Disadvantages
Sometimes, it’s hard to have __ with relatives.
When the family is part of the business, you can’t always __ .

26. Paths to Entrepreneurship
Graphic Organizer
4.2
Paths to Entrepreneurship __ __
ENTREPRENEURSHIP __ __
Chapter 4 • Entrepreneurship
Succeeding in the World of Work

27. SECTION 4.2 REVIEW Key Concept Checkpoint Comprehension
State the advantages and disadvantages of buying an existing business rather than starting a new business. __
continued

28. SECTION 4.2 REVIEW Key Concept Checkpoint Critical Thinking
Why should you think twice about buying a business that has a bad reputation? __

29. End of Section 4.2
Ways of Becoming a Business Owner

30. Getting Started in Your Own Business
Section 4.3
Getting Started in Your Own Business

31. Forms of Legal Ownership
The three forms of legal business ownership are:
sole proprietorship, __
corporation.
continued

32. Sole Proprietorship A sole proprietorship is a business that is __.
About __ of all U.S. businesses are sole proprietorships.

33. Partnership A partnership is a business arrangement in which __.
Control and profits are __, according to a partnership agreement.

34. Corporation A corporation is a business owned by __.
Shareholders earn a __ based on the number of shares they __.

35. Location, Location, Location
When the location of your business is important, consider these factors:
types of __ in the area,
con __ dition of streets and buildings,
location of the __, and
location of your __.

36. Working at Home
Working in your home is cheaper and more convenient than __.
You’ll also enjoy more flexibility and a relaxed __.

37. Working at Home
Some communities restrict the __ that can operate in residential areas.
Working at home can be isolating.

38. Financing
Whatever type of business you launch, you’ll need __ to get it going.
To apply for a loan, you’ll need a __ and a __.

39. Financing
A business plan gives specific information about your business.
Describes your __ and states where your business will be __ .
Specifies how many __ you will hire and __
Describes __ and their strengths and __ .
Describes marketing __ and __ for starting the business.
continued

40. Financing A financial plan spells out your start-up costs, __ .
Operating expenses are the __ of doing business.

41. Operating Your Own Business
Whatever business you choose to start, you will need a variety of skills, including:
reading,
__,
math, and
__ and __ skills.
Describe Africa Brown’s business:

42. Operating Your Own Business
One essential record for business owners is the income statement.
An income statement is a summary of your business’s __ .

43. Operating Your Own Business
Revenue is __ .
Revenue is the __ item on an income statement.

44. Operating Your Own Business
Gross profit is the difference between the __ .
Net profit is the amount left over after __ .

45. Operating Your Own Business
A balance sheet summarizes a business’s __ .
Assets, which can be classified as current or fixed, are anything of __ that the business __ .
Liabilities are __ .
Equity, or ownership interest, is the __ in your business.

46. Operating Your Own Business
A cash flow statement is a monthly plan that shows when you anticipate that the business will __ and when you expect to __ .

47. Key Concept Checkpoint
SECTION 4.3 REVIEW
Key Concept Checkpoint
Comprehension
Imagine that you are starting a trucking company. What form of ownership will you choose? Why?
continued

48. Key Concept Checkpoint
SECTION 4.3 REVIEW
Key Concept Checkpoint
Comprehension
What should you consider in choosing a location for this business?
continued

49. Key Concept Checkpoint
SECTION 4.3 REVIEW
Key Concept Checkpoint
Comprehension
You have decided to organize your trucking company as a corporation. How will you go about financing it?
continued

50. Key Concept Checkpoint
SECTION 4.3 REVIEW
Key Concept Checkpoint
Critical Thinking
Why might you choose to take a business loan from a bank, even if a relative has enough money to finance your venture?

51. Getting Started in Your Own Business
End of Section 4.3
Getting Started in Your Own Business