3.10: Entrepreneurial Ventures Flashcards
The process of starting new businesses, generally in response to opportunities
entrepreneurship
Organizations that pursue opportunities, are characterized by innovative practices, and have growth and profitability as their main goals
entrepreneurial ventures
An organization that is independently owned, operated, and financed; has fewer than 100 employees; doesn’t necessarily engage in any new or innovative practices; and has relatively little impact on its industry
small business
Individuals who work for profit or fees in their own business profession, trade, or farm
self-employment
An analysis of the various aspects of a proposed entrepreneurial venture designed to determine its feasibility
feasibility study
External equity financing provided by professionally managed pools of investor money
venture capitalists
A private investor (or group of private investors) who offers financial backing to an entrepreneurial venture in return for equity in the venture
angel investors
The first public registration and sale of a company’s stock
initial public offering (IPO)
A written document that summarizes a business opportunity and defines and articulates how the identified opportunity is to be seized and exploited
business plan
Business arrangements that are based on people sharing something they own or providing a service for a fee
sharing economy
A form of legal organization in which the owner maintains sole and complete control over the business and is personally liable for business debts
sole proprietorship
A form of legal organization in which two or more business owners share the management and risk of the business
general partnership
A form of legal organization consisting of general partner(s) and limited liability partner(s)
limited liability partnership (LLP)
A legal business entity that is separate from its owners and managers
corporation
A corporation owned by a limited number of people who do not trade the stock publicly
closely held corporation
A specialized type of corporation that has the regular characteristics of a C corporation but is unique in that the owners are taxed as a partnership as long as certain criteria are met
S corporation
A form of legal organization that’s a hybrid between a partnership and a corporation
limited liability company (LLC)
The document that outlines the provisions governing the way an LLC will conduct business
operating agreement
A personality trait that descries individuals who are more prone to take actions to influence their environments
proactive personality
A perspective on recognizing performance declines that suggests watching out for subtly declining situations
“boiled frog” phenomenon
Exiting a venture when an entrepreneur hopes to capitalize financially on the investment in the venture
harvesting
