Answer to Question #285746 in Economics of Enterprise for Charlton

Question

16. Name three different modes of entry for a technology venture that is contemplating entering a foreign market. What factors should the entrepreneur consider when making this decision?

17. Under what operating system would a technology venture establish standard operating procedures? Why would a venture need to develop such procedures?

18. What is meant by the term “business model”?

19. What are the risks of operating a business as a sole proprietorship?

20. What are the advantages associated with operating a technology venture as a limited liability company?

Answer 1

Solution:

16.). The three different modes of entry for a technology venture that is contemplating entering a foreign market are exporting, joint venture, and licensing.

The factors that an entrepreneur should consider when making this decision includes budget and funding, legal requirements, an effective business plan, analysis of competitors, and business risks.

 

17.). Any good operating system such as Windows Operating System can be used by a technology venture to establish standard operating procedures.

Standard operating procedures are important for the technology venture as they offer step-by-step instructions compiled by a company to assist workers to perform routine operations.

 

18.). A business model is a blueprint for how a company will generate value. Ultimately, it boils down a company's potential to its essence. In economic, social, cultural, or other contexts, a business model describes how an organization creates, delivers, and captures value.

 

19.). The risks of operating a business as a sole proprietorship include personal liability, higher taxes, limited opportunities for growth and investment, lack of safety net, difficulty in obtaining capital, and lost opportunity.

 

20.). The advantages associated with operating a technology venture as a limited liability company includes tax benefits, limited liability, corporate ownership, easy start-up and upkeep, and management flexibility.