Page 128 - Business Principles and Management

Chapter 5 • Proprietorships and Partnerships

business plans or need help after disasters. The SBA also sponsors free consult-
ing assistance through Small Business Development Centers (SBDCs). Entrepre-
neurs who need help researching and writing business plans can use SBDC
services.

ASSUME THE RESPONSIBILITIES OF BUSINESS OWNERSHIP
By developing a workable business plan, entrepreneurs become aware of their
risks. As a result, they may be able to anticipate problems and take preventive
action. The business plan also causes the aspiring business owner to become
more realistic about the responsibilities of ownership.
As the owner of your new delivery service, you have duties that include not
only pickups and deliveries but also many other responsibilities. Even if you run
the business from your home, you will have added expenses for an office, a
garage, a computer and printer, and communication
devices such as a fax, cell phone, and answering
machine. You must find customers, persuade those
customers to pay a fair price for your services, and
collect from those customers. Furthermore, you
must assume responsibility for damage that may
occur to your merchandise. You will have to pay The SBA provides an extensive Web site to
fees for various licenses, taxes, insurance premiums, support small business. Point your browser to
gasoline, van repairs, and other operating expenses. www.thomsonedu.com/school/bpmxtra. Create
It may also be necessary to hire, train, and super- a list of the major areas of SBA support. Click
vise employees. on “Starting Your Business.” Write a brief
Aspiring entrepreneurs should carefully consider summary of the types of information provided.
the responsibilities of ownership before opening a Describe how this information can help a small
business. These tasks are welcome challenges for business be successful.
some people, but may seem like overwhelming bur-
dens to others. People who enjoy being leaders and www.thomsonedu.com/school/bpmxtra
making decisions find great satisfaction in owning a
business. Ownership offers opportunities to make

PHOTO: © GETTY IMAGES/PHOTODISC. The most common form of

business ownership is the
proprietorship. What are some
advantages and disadvantages
of proprietorships?

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