Question

1. What is a small business? Discuss its important in the US economy and explain popular area of small business.

2. In what ways is entrepreneurship an important part of our economic system.

3. Expand your answers using this lead question. Starting your own business is almost always a time-consuming and difficult task. Explain your answer.

4. Expand your answers using this lead question. In starting a business in the U.S., it is important to select the form of ownership that almost fits your need. The primary reason for this is that its difficult and very expensive to change from one form of business ownership to another. Explain your answer.

Answer 1

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1. What is a small business? Discuss its important in the US economy and explain popular area of small business.
   Ans - Small businesses are of emotional significance to local groups in purchasing and selling with friends and neighbors. The financial advantages of local shopping also show the significance of tiny enterprises in rural and large towns. A small business is the only way of survival in some towns and villages, while serving a tiny population. In a large town, tiny companies often offer a more varied stock or offer specialized client experiences. Small companies also offer fresh jobs and are the construction blocks for the biggest companies in the United States. Small Business are important in US economy as they boost the employment. They generate more revenue collectively. It accounts for more than 99.7% of the U.S. employer, and each year it creates around 60 to 80% of fresh employment. Moreover, there are around 130 million employees working in tiny enterprises, of which 8 million work for over 600,000 tiny franchisees. 54 percent of U.S. sales are actually made by tiny companies. More than 500,000 tiny companies with staff starting each year provide constant employment, healthy financial growth and have an influence on their societies.

2. In what ways is entrepreneurship an important part of our economic system.
   Ans - Employers are often considered to be domestic assets for cultivation, motivation and remuneration. Great businessmen can alter our way of living and working. When they succeed, their inventions can enhance living standards and generate employment and add to a increasing economy as well as generating wealth through entrepreneurship. For a series of reasons, entrepreneurship, from social change promotion to innovation, is therefore essential. Entrepreneurs Spur economic growth through the industry's provision of fresh products and services. Add to national income by entrepreneurs. Enterprise ventures contribute to creating fresh riches. Moreover, enhanced jobs and greater incomes help improve domestic income by raising tax revenues and increasing public expenditure. Enterprises create social change by providing distinctive products and services, breaking away from tradition and reducing reliance on outdated techniques and systems.
   
   
3. Expand your answers using this lead question. Starting your own business is almost always a time-consuming and difficult task. Explain your answer.
   Ans - Yes, I agree with this statement. A time commitment is needed to start a company. There is freedom to work your own time and your own lifestyle, but it is often sacrificed to guarantee the success of the company. Thus, even if the company proprietor can attend a baseball match for his children, he can operate 90 hours of job on a periodic basis. Losing cash is one of the greatest hazards a company has to face. There are start-up expenses, including monthly duties, for materials and businesses. Costs differ according to company type and size. When you start a company, many company owners take a loan, which implies they are in debt from day one and are also attempting to create profits.

4. Expand your answers using this lead question. In starting a business in the U.S., it is important to select the form of ownership that almost fits your need. The primary reason for this is that its difficult and very expensive to change from one form of business ownership to another. Explain your answer.
   Ans - Yes, that's true. As a business proprietor, one of the first choices to make is how the company should be structured. This choice has long-term consequences and will therefore assist to choose the correct type of property for you by consulting an accountant and attorney. Changing the ownership of companies is a long and complicated method, even not for easy company transactions. For another reason, you may withdraw or sell your company. There are several checklists that need to be ticked for changing the ownership of a business from one to another. So it would be wise on the part of the entrepreneur for choosing the permanent business ownership type and is not advised to change it unless and until it is necessary and important. This involves lot of time, cost and most human resources from others too.