When starting a business, there are numerous ethical and legal issues that must be considered by a business owner. Taking legal and ethical issues into account in the beginning of the businesses doesn’t only ensure quick progress but it also provides business with long-term benefits. Ethical Issues in Setting a New Business But in this
Types of ESOPs There are broadly speaking three types of ESOP options as follows: Incentive Stock Option (ISOs) These are also called qualified stock options because they qualify for having special tax treatment. No income taxes become due at the time of granting or exercising such option, as the tax is deferred until the stock
What is Exit Strategy? Exit strategies related to startup funding are quite often misunderstood. The “exit” in exit strategy is for the money, not the startup founders or small business owners. The company brings in money and the investors get money out. So, startups looking for angel investors or venture capital (VC) absolutely need an
These are the elements of marketing plan: Product or Service The first step of a market pan is to decide about how the product or service will be positioned in the grow market. The quality and reliability of product is important for its success in future. Plan also contains the information about use to the
What Lenders and Investors Look for in a Business Plan? Banks usually are not a new venture’s sole source of capital because a bank’s return is limited by the interest rate it negotiates, but its risk could be the entire amount of the loan if the new business fails. Once a business is operational and
Need for Developing Business Plan A business plan enables to demonstrate to stakeholders, including founders and investors, that there is potential for considerable growth in a large market. It should illustrate that your company is capable of achieving significant market power with a sustainable and differentiated product or service offering. The business plan also demonstrates
What is Cultural Environment in Business? General perception about entrepreneurship development is that it is based on cultural and ethical values. People generally believe that success or failure of an individual or an enterprise is totally governed by the mercy and pleasure of some special God. It is also believed that status is inherited, it
What is Social Environment of Business? Social environment prepares background for entrepreneurial activities. Today business is regarded as a social institution. It forms an integral part of the social organization having responsibilities to a wider circle of individuals like entrepreneurs, workers and consumers, etc. who participate in the business activities. Social structure, social values and
What is Technological Environment of Business? Technological forces constitute the technological environment. These forces include the expertise, procedures and systems used by enterprises to make profound changes in the transformation process and in goods and services. “Fuelled by scientific research and industrial breakthrough technological forces define new industries and provide enterprises with tools and opportunities
What is Economic Environment? Economic environment refers to all those economic factors which have a bearing on the functioning of a business unit. Business depends on the economic environment for all the needed inputs. It also depends on the economic environment to sell the finished goods. Naturally, the dependence of business on the economic environment
