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132 Cards in this Set
- Front
- Back
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Entrepreneur
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a person who is relentlessly focused on an opportunity, in either a new or an existing business, to create value while assuming both the risk and reward for his or her effort
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Bootstrapping
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doing more with less in terms of resources invested in a business, and, where possible, controlling the resources without owning them
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Small business
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a business that is small compared to large companies in an industry, has geographically localized operations, is financed by only a few individuals, and has a small management team
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4. Entrepreneurial opportunity
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an economically attractive and timely opportunity that creates value for interested buyers or end users
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5. Reluctant entrepreneur
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a person who becomes an entrepreneur as a result of some severe hardship (financial or not)
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6. Refugee
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a person who becomes an entrepreneur to escape an undesirable situation
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7. Founders
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an entrepreneur who brings a new firm into existence
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8. Franchisee
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an entrepreneur whose power is limited by a contractual relationship with a franchising organization
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9. High-potential venture (gazelle)
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a small firm that has great prospects for growth
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10. Attractive small firm
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a small firm that provides substantial profits to its owner
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11. Microbusiness
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a small firm that provides minimal profits to its owner
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12. Lifestyle business
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a microbusiness that permits the owner to follow a desired patter of living
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13. Artisan entrepreneur
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a person with primarily technical skills and little business knowledge who starts a business
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14. Opportunistic entrepreneur
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a person with both sophisticated managerial skills and technical knowledge who starts a business
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15. Entrepreneurial team
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two or more people who work together as entrepreneurs on one endeavor
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16. Niche market
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a specific group of customers with an identifiable but narrow range of product or service interests
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17. Mentors
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a knowledgeable person who can offer guidance based on experience in a given field
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18. Entrepreneurial legacy
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material assets and intangible qualities passed on to both heirs and society
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19. Integrity
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an uncompromising adherence to the lofty values, beliefs, and principles that an individual claims to hold
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20. Ethical issues
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issues that involve questions of right and wrong
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21. Stakeholders
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individuals or groups who either can affect or are affected by the performance of the company
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22. Social responsibilities
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a company’s ethical obligations to the community
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23. Intellectual property
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original creations, including inventions, literary creations, and works of art that are protected by patents or copyrights
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24. Ethical imperialism
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the belief that the ethical standards of one’s own country can be applied universally; an arrogant attempt to impose American perspectives on other societies
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25. Ethical relativism
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the belief that ethical standards are subject to local interpretation; implies that anything goes if the local culture accepts it
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26. Underlying values
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unarticulated ethical beliefs that provide a foundation for ethical behavior in a firm
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27. Code of ethics
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official standards of employee behavior formulated by a business owner
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28. Sustainable small business
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a profitable company that responds to customers’ needs while showing reasonable concern for the environment
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29. Environmentalism
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the effort to protect and preserve the environment
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30. Opportunity recognition
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identification of potential new products or services that may lead to promising businesses
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31. Entrepreneurial alertness
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readiness to act on existing, but unnoticed, business opportunities
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32. Startups
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new business ventures created “from scratch”
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33. Type A ideas
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startup ideas centered around providing customers with an existing product or service NOT available in their market; tapping military intelligence to take an existing product to the civilian market
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34. Type B ideas
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startup ideas involving new or relatively new technology, centered around providing customers with a new product
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35. Type C ideas
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startup ideas centered around providing customers with new or improved products or services; Lemonaide crutches made her day better
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36. Serendipity
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a facility for making desirable discoveries by accident
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37. General environment
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the broad environment, encompassing factors that influence most businesses in a society
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38. Industry environment
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the environment that includes factors that directly impact a given firm and its competitors
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39. Competitive environment
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the environment that focuses on the strength, position, and likely moves and counter-moves of competitors in an industry
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40. Resources
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the basic inputs that a firm uses to conduct its business
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41. Tangible resources
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those organizational resources that are visible and easy to measure; an office building, computer equipment
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42. Intangible resources
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those organizational resources that are invisible and difficult to assess; intellectual property rights such as patents and copyrights, a firm’s reputation
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43. Capabilities
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the integration of various organizational resources that are deployed together to the firm’s advantage
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44. Competitive advantage
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a benefit that exists when a firm has a product or service that is seen by its target market as better than those of competitors
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45. Core competencies
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those capabilities that provide a firm with a competitive edge and reflect its personality
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46. SWOT analysis
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an assessment that provides a concise overview of a firm’s strategic situation
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47. Strategy
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a plan of action that coordinates the resources and commitments of an organization to achieve superior performance
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48. Cost-based strategy
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a plan of action that requires a firm to hold down its costs so that it can compete by charging lower prices and still making a profit
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49. Differentiation-based strategy
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a plan of action designed to provide a product or service with unique attributes that are valued by customers
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50. Focus strategy
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a plan of action that isolates an enterprise from competitors and other market forces by targeting a restricted market segment
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51. Strategic decision
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a decision regarding the direction a firm will take in relating to its customers and competitors
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52. Feasibility analysis
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a preliminary assessment of a business idea that gauges whether or not the venture envisioned is likely to succeed
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53. Fatal flaw
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a circumstance or development that alone could render a new business unsuccessful
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54. Franchising
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a business relationship in which an entrepreneur can reduce risk and benefit from the business experience of all members of the franchise system
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55. Franchisor
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the party in a franchise contract that specifies the methods to be followed and the terms to be met by the other party
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56. Franchisee
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an entrepreneur whose power is limited by a contractual relationship with a franchising org.
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57. Franchise contract
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the legal agreement between franchisor and franchisee
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58. Franchise
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the privileges conveyed in a franchise contract
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59. Product and trade name franchising
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a franchise agreement granting the right to use a widely recognized product or name (Coca-Cola)
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60. Business format franchising
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a franchise agreement whereby the franchisee obtains an ENTIRE marketing and management system geared to entrepreneurs (Sonic, McDonalds, Hilton hotels)
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61. Master licensee
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an independent firm or individual acting as a middleman or sales agent with the responsibility of finding NEW franchisees within a specified territory
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62. Multiple-unit ownership
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ownership by a single franchisee of more than one franchise from the same company
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63. Area developers
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individuals or firms that obtain the legal right to open SEVERAL franchised outlets in a give area
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64. Piggyback franchising
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the operation of a retail franchise within the physical facilities of a host store
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65. Multi-brand franchising
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the operation of several franchise organizations within a single corporate structure (Dwyer Group franchises 6 companies)
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66. Co-branding
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bringing two franchise brands together under one roof (KFC & Taco Bell in a connected store)
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67. Churning
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actions by franchisors to void the contracts of franchisees in order to sell the franchise to someone else and collect an additional fee
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68. Encroachment
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the franchisor’s selling of another franchise location within the market area of an existing franchisee
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69. Franchise Disclosure Document (FDD)
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a document that provides the accepted format for satisfying the franchise disclosure requirements of the FTC
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70. Matchmaker
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specialized brokers that bring together buyers and sellers of businesses
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71. Due diligence
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the exercise of reasonable care in the evaluation of a business opportunity
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72. Nondisclosure agreement
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an agreement in which the buyer promises the seller that he or she will not reveal confidential information or violate the seller’s trust
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73. Fair market value
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the price at which the property would change hands between a willing buyer and willing seller, both parties having reasonable knowledge of relevant facts
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74. Business plan
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a document that outlines the basic concept underlying a business and describes how that concept will be realized
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75. Dehydrated plan
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a short form of a business plan that presents only the most important issues and projections for the business
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76. Comprehensive plan
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a full business plan that provide an in-depth analysis of the critical factors that will determine a firm’s success or failure, along with all the underlying assumptions
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77. Executive summary
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a section of the business plan that conveys a clear and concise overall picture of the proposed venture
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78. Product/service plan
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a section of the business plan that describes the products and/or services to be provided and explains its merits; present your company’s competitive advantage here
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79. Marketing plan
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a section of the business plan that describes the user benefits of the product or service and the type of market that exists
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80. Operations and development plan
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a section of the business plan that offers information on how a product will be produced or a service provided, including descriptions of the new firm’s facilities, labor, raw materials, and processing requirements
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81. Management team
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a section of the business plan that describes a new firm’s organizational structure and the backgrounds of its key players
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82. Critical risks
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a section of the business plan that identifies the potential risks that may be encountered by an investor
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83. Offering
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a section of the business plan that indicates to an investor how much money is needed, and when and how the money will be used
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84. Exit strategy
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a section of the business plan that focuses on options for cashing out of the investment
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85. Financial plan
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a section of the business plan that projects the company’s financial position based on well-substantiated assumptions and explains how the figures have been determined
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86. Pro forma statement
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projections of a company’s financial statements up to five years, including balance sheets, income statements, and statements of cash flows, as well as cash budgets
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87. Business model
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an analysis of how a firm plans to create profits and cash flows given its revenue sources, its cost structures, and the required size of investment
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88. Revenue model
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a component of the business model that identifies the different types of revenue streams a firm expects to receive
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88. Cost structures
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a component of the business model that provides a framework for estimating the nature and types of costs and expenses a firm may incur
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89. Maximum investment
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a component of the business model that provides estimates of the types and amounts of investment required to achieve positive profits and cash flows
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90. Small business marketing
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business activities that direct the creation, development, and delivery of a bundle of satisfaction from the creator to the targeted user
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91. Market analysis
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the process of locating and describing potential customers
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92. Marketing mix
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the combination of product, pricing, promotion, and distribution activities
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93. Customer profile
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a description of potential customers in a target market
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94. Intellectual property
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original intellectual creations, including inventions, literary creations, and works of art, that are protected by patents or copyrights
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95. Marketing research
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the gathering, processing, interpreting, and reporting of market information
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96. Secondary data
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market information that has been previously compiled; like from the Internet
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97. Primary data
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new market information that is gathered by the firm conducting the research; observational methods and questioning methods
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98. Market
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a group of customers or potential customers who have purchasing power and unsatisfied needs
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99. Market segmentation
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the division of a market into several smaller groups with similar needs
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100. Segmentation variables
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the parameters used to distinguish one form of market behavior from another
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101. Benefit variables
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specific characteristics that distinguish market segments according to the benefits sought by customers
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102. Demographic variables
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specific characteristics that describe customers and their purchasing power; age, gender, income
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103. Unsegmented strategy (mass marketing)
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a strategy that defines the total market as the target market; assumes all customers desire the same basic benefit
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104. Multi-segmented strategy
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a strategy that recognizes different preferences of individual market segments and develops a unique marketing mix for each
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105. Single-segment strategy
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a strategy that recognizes the existence of several distinct market segments but focuses on only the most profitable segment
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106. Sales forecast
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a prediction of how much of a product or service will be purchased within a given market during a specified time period
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107. Breakdown process (chain-ratio method)
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a forecasting method that begins with a large-scope variable and works down to the sales forecast
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108. Buildup process
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a forecasting method in which all potential buyers in a target market’s submarkets are identified and then the estimated demand is added up
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109. Direct forecasting
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a forecasting method in which sales is the estimated variable
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110. Indirect forecasting
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a forecasting method in which variables related to sales are used to project future sales
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111. Management team
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managers and other key persons who give a company its general direction
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112. Social network
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an interconnected system of relationships with other people
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113. Social capital
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the advantage created by an individual’s connections in a social network
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114. Reciprocation
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a powerful social rule based on an obligation to repay in kind what another has done for or provided to us
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115. Sole proprietorship
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a business owned by one person, who bears unlimited liability for the enterprise
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116. Unlimited liability
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liability on the part of an owner that extends beyond the owner’s investment in the business
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117. Partnership
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a legal entity formed by two or more co-owners to operate a business for profit
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118. Partnership agreement
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a document that states explicitly the rights and duties of partners
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119. Corporation
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a business organization that exists as a legal entity and provides limited liability to its owners
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120. Legal entity
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a business organization that is recognized by the law as having a separate legal existence
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121. C Corporation
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an ordinary corporation, taxed by the federal government as a separate legal entity
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122. Corporate charter (certificate of incorporation)
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a document that establishes a corporation’s existence
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123. Stock Certificate
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a document specifying the number of shares owned by a stockholder
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124. Pre-emptive right
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the right of stockholders to buy new shares of stock before they are offered to the public
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125. Piercing the corporate veil
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a situation in which the courts conclude that incorporation has been used to perpetuate a fraud, skirt a law, or commit some wrongful act and thus REMOVE liability protection from the corporate entity
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126. Limited partnership
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a partnership with at least one general partner and one or more limited partners
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127. General partners
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a partner in a limited partnership who has UNLIMITED personal liability
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128. Limited partner
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a partner in a limited partnership who is not active in its management and has limited personal liability
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129. S Corporation (Subchapter S corporation)
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a type of corporation that offers limited liability to its owners but is taxed by the federal government as a partnership
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130. Strategic alliance
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an organizational relationship that links two or more independent business entities in a common endeavor
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131. Board of directors
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the governing body of a corporation, elected by the stockholders
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