Fourth Edition

PART 1 . . . . . . . . . . . . . . . . . . . . . . . .

Understanding the Contemporary Business Environment

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Introducing to Business concept

Unit 1: Companies
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I. Introduction (Cont)
Type of business (Form of business ownership) are:
Sole Proprietorship Partnership Corporation S Corporation Limited Liability Company

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I. Introduction (Cont)
- Foreign market entry + Franchising + Licensing

+ Joint Venture
4. How to run your own business? - What kind of business do you prefer?

- How much capital do you have?

- Is it a long term or short term? - How can you get capital investment?
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I. Introduction (Cont)
- Who is your customers? - Customer behavior? - What is the gold and objective of your business?

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Business Ownership Definition

Sole proprietorship: A business that is owned, and usually managed, by one person. Partnership: A legal form of business with two or more owners. Corporation: A legal entity with authority to act and have liability separate from its owners.

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(cont)
Unlimited liability: The responsibility of business owners for all of the debts of the business.

Franchise: The right to use a specific businesss name and sell its products or services in a given territory.
Franchisee: A person who buys a franchise.

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(Cont)
Franchisor: A company that develops a product concept and sells others the rights to make and sell the product.

Franchise agreement: An arrangement whereby someone with a good idea for a business sells the right to use the business name and sell a product or service to others in a given territory.
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(cont)
Licensing: Grant a license to permit the use of something or to allow an activity to take place.

Joint-venture:
- Is formed for a specific purpose - Has a beginning and an end - Is a business agreement in which parties agree to develop, for a finite time, a new entity and new assets by contributing equity.
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II. Business Concept

1. What is business concept? - An idea for a business that includes basic information such as the service or product, the target demographic, and a unique selling proposition that gives a company an advantage over competitors. - A business concept may involve a new product or delivering an existing product. Once a concept is developed, it is incorporated into a business plan. - It is a business opportunity
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II. Business Concept (Cont)

2. Purpose of business Concept - The purpose of a business concept is to ensure the success of a project by providing support for organizational, contractual and payment framework. - Playing a role as a guide to become an entrepreneur

- Providing way of thinking and acting that is opportunity obsessed, holistic in approach, and leadership balanced.
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- To be ready in experiencing in business

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II. Business Concept (Cont)

Business concept include:
- The features of the product or service, in other words, what it actually is or does. Features tell the practical specifics about your product or service. - A description of the customer and the benefits of the product or service to the customer. - The uniqueness of the product or service, or how it is differentiated from other, similar products or services. - Sales channels, that is, to whom, where, for how much, and how the product or service will be sold.
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