BUSN315 Course Discussions Week 7

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BUSN315 Course Discussions Week 7
What are the key advantages of forming a corporation? Why do we have a form of business that…

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BUSN315 Course Discussions Week 7

BUSN315 Course Discussions Week 7

All Students Posts 69 Pages

Legal Form of a Business – 36 Pages

What are the key advantages of forming a corporation? Why do we have a form of business that, as the text says, is like an “artificial person”?  What is a franchise?  What are some examples?

What are your thoughts on this choice by Howard Schultz, the CEO of Starbucks?  What are some of the benefits of not franchising, but maintaining control?  Is Starbucks losing out in any way by not franchising in the U.S.?

There are disadvantages such as this in buying a franchise, however, there are also advantages.  If you were going to start a business, would you be interested in a franchise, or would you prefer to start your own business from scratch, without any ties to a franchise?  Why would you make the choice you state – what would influence your decision?

A franchise is a type of business that pays a company to use their name, products, services, and products. To me its a great way of owning a business without having to figure everything out on your own. The plan usually has been proven successful by the franchisor, and the franchisor also gives you resources to operate. A company will license its brand and products to other small businesses and owners for a fee. McDonalds, for example, is operated mostly by franchises. John Doe wants to own his own business, so he can go to McDonalds and pay a fee to have his own McDonalds. John Doe then becomes the franchisee and typically bases an initial fee for the license and then monthly based on sales revenue or whatever is specified in the agreement. The franchisee (John Doe) then operates a McDonalds and is given resources for hiring, operations, ordering, and so much more. That’s a huge benefit as most of these companies who license it out already have policies, procedures, and processes in place to make the franchises run easier. That also ensures that they continue to receive the franchise income…

Entrepreneurial Characteristics – 33 Pages

How do you rate yourself on each of the six “entrepreneurial characteristics”? Why are these characteristics so important?  The word entrepreneur is a French word meaning “risk taker.” What are some of the risks entrepreneurs take when starting their own companies?

There are a lot of sources that entrepreneurs can access.  An important one is the Small Business Administration (SBA.gov).  Have any of you used information from this site?  If not, take a look at it – could you use some of the information if you wanted to begin a business?

Another characteristic of entrepreneurs is a high internal locus of control.  What is “locus of control” – in your own words, what is the difference between an internal locus of control and an external locus of control?  Can a person have an internal locus of control that is too high or too strong? Why or why not?

The first risk I think about, as a father and husband, is losing that steady income stream. When someone decides to start their own company, it typically can’t be done while you are working another job. You have to be all in and that usually means leaving that steady paycheck, benefits, and security. Going along with that is the risk of failure. The U.S Bureau of Labor gives statistics that 20 % of small businesses fail within the first year, and that number grows to 50% over a five year period (lending tree). Those are not great odds especially considering the time and finances at stake. It takes a lot of capital to get a business going so that proves challenging and if your liability is not limited, a failing business can mean the IRS will come after you…