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FBLA Entrepreneurship Study Guide Summary

The FBLA Entrepreneurship Study Guide covers essential topics in business financing, including debt and equity financing, and various sources of funding such as bank loans and angel investors. It outlines key financial statements, government regulations, business plan components, types of businesses, marketing terms, taxation, economic systems, and miscellaneous concepts like SWOT analysis and GDP. This guide serves as a comprehensive resource for understanding the fundamentals of entrepreneurship and business management.

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6 views

FBLA Entrepreneurship Study Guide Summary

The FBLA Entrepreneurship Study Guide covers essential topics in business financing, including debt and equity financing, and various sources of funding such as bank loans and angel investors. It outlines key financial statements, government regulations, business plan components, types of businesses, marketing terms, taxation, economic systems, and miscellaneous concepts like SWOT analysis and GDP. This guide serves as a comprehensive resource for understanding the fundamentals of entrepreneurship and business management.

Uploaded by

mofongosupr3m3
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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FBLA Entrepreneurship Study Guide Summary

Types of Business Financing

1.​ Debt Financing – Borrow money with a repayment obligation plus interest (e.g., bank
loans).​

2.​ Equity Financing – Sell part ownership for cash; investors assume risk but gain higher
potential returns.​

Sources of Financing:

●​ Friends and Family – Less strict terms but need formal structure.​

●​ Credit Cards – Good for short-term cash flow but risky if mismanaged.​

●​ Bank Loans – Secured by assets or backed by government guarantees.​

●​ Leasing – For large equipment and vehicles.​

●​ Angel Investors – Fill gap between personal financing and venture capital.​

●​ Private Lending – Alternative when banks refuse funding.​

Financial Statements

●​ Balance Sheet – Snapshot of assets, liabilities, and equity (Assets = Liabilities +


Equity).​

●​ Income Statement – Shows revenue and expenses over time (Net Income = Revenue -
Expenses).​

●​ Cash Flow Statement – Tracks cash inflow and outflow (Operating, Investing, and
Financing activities).​

Government Regulations & Laws


●​ Antitrust & Fair Trade: Sherman Act (monopolies), Clayton Act (product tying),
Robinson-Patman Act (price discrimination).​

●​ Advertising: Wheeler-Lea Act (deceptive practices).​

●​ Labor: Fair Labor Standards Act (minimum wage), Safety and Health Act (workplace
safety).​

●​ Employment: Immigration and Nationality Act (work visas).​

●​ Regulatory Bodies: FDA (food & drugs), FCC (broadcasts), FTC (consumer protection),
CPSC (consumer products).​

●​ Small Business Administration (SBA): Provides loans and business support.​

Business Plan Components

1.​ Executive Summary – Key goals, mission statement, financial outlook.​

2.​ Company Description – Business nature, target market, competitive advantage.​

3.​ Market Analysis – Industry outlook, customer needs, market share potential.​

4.​ Organization & Management – Structure, ownership, management team.​

5.​ Product/Service Line – Benefits, competitive edge, life cycle, patents.​

6.​ Marketing & Sales – Strategy, market penetration, growth.​

7.​ Funding Request – Current and future funding needs.​

8.​ Financial Projections – Income, balance sheets, and cash flow forecasts.​

9.​ Appendix – Supporting documents (licenses, contracts, market studies).​

Types of Businesses

●​ Sole Proprietorship – Simple to start but owner is liable for debts.​


●​ Partnership – More capital and expertise but shared liability.​

●​ Limited Partnership – Limited liability for some partners.​

●​ C Corporation – Protected from personal liability, can raise capital, but costly to
maintain.​

●​ S Corporation – No double taxation but ownership restrictions.​

●​ LLC – Simple structure with liability protection, but hard to go public.​

Ethics

●​ Code of Ethics: Guidelines for behavior.​

●​ Responsibilities: Be honest with customers, fair to suppliers, and responsible with


investors’ money.​

Marketing Terms

●​ Market Penetration – Percentage of population using a product.​

●​ Market Share – Percentage of the market held by a company.​

●​ Market Segmentation – Dividing market into specific target groups.​

Taxes

●​ Sole Proprietorship – Form 1040.​

●​ Partnership/LLC – Form 1065 and 1040.​

●​ C Corporation – Form 1120 and 1040 (double taxation).​

●​ S Corporation – Form 1120S and 1040.​


Economic Systems

●​ Traditional Economy – Based on customs (e.g., tribes).​

●​ Market Economy – Driven by consumer choices.​

●​ Command Economy – Government-controlled.​

●​ Mixed Economy – Market economy with government oversight (e.g., USA).​

Miscellaneous

●​ PERT Diagram – Project management tool showing task dependencies.​

●​ SWOT Analysis – Strengths, Weaknesses, Opportunities, Threats.​

●​ Scarcity – Limited resources vs. unlimited wants.​

●​ Equilibrium Point – When supply and demand balance.​

●​ GDP – Total value of goods and services produced within a country.

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