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Entrepreneurism: Questions and Answers - Essay Example

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Entrepreneurism: Questions and Answers

The three forms of management are: management by a single proprietor, management by partners, and corporate management. In sole proprietorship, the owner assumes all the decision making and liability, as well as takes all the business profit. In partnership, the business partners share in decision making, liability, and profits. In a corporation, decisions are regulated by the board. The corporation has an identity apart from individual owners and assumes liability; income is distributed in proportion to the amount of stocks owned by the shareholders. The difference between a corporation and proprietorship, partnership lies in taxation wherein taxes are smaller for the sole proprietorship and partnership because the profits are reflected as personal income.

3) What does Schumpeter mean by the term creative destruction? Name a modern day form of creative destruction and what are its consequences?
Schumpeter’s creative destruction refers to the innovation in design or cutting of manufacturing costs that eventually attract customers away from less efficient products and manufacturers.
Wal-Mart is a recent example of a company that has
achieved a strong position in many markets, through its use of new inventory-
management, marketing, and personnel-management techniques, using its
resulting lower prices to eliminate the profitability of older or smaller
companies.
However, just as the mini-cassette replaced the 8-track, only to be replaced in
turn by the compact disc, which is now being undercut by MP3 players. ...Show more
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In the paper “Entrepreneurism: Questions and Answers” in the form of questions and answers the author analyzes different management issues: difference between a market and a target market, marketing mix, multiple streams of income, gross profit, gross margin, etc…
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