chap 2

Question 1

What is an action plan?

Answer 1

Organized, step-by-step outline or guide that pulls together the ideas, thoughts, and key steps necessary to help set the stage for entrepreneurial success

Question 2

Define benchmarking.

Answer 2

Comparing one’s own company’s performance with an industry average, a leader within the industry, or a market segment

Question 3

What is bootstrapping?

Answer 3

Funding strategy that seeks to optimize use of personal funds and other creative strategies (such as bartering) to minimize cash outflows

Question 4

What is the breakeven point?

Answer 4

Level of operations that results in exactly enough revenue to cover costs

Question 5

What does a business model outline?

Answer 5

Plan for how venture will be funded; how the venture creates value for its stakeholders, including customers; how the venture’s offerings are made and distributed to the end users; and how income will be generated through this process

Question 6

Define capitalism.

Answer 6

System in which individuals, people, and companies have the freedom to make decisions and own property as well as benefit from their own efforts, with government playing a secondary role in oversight

Question 7

What is cash flow?

Answer 7

Money collected by the business through revenue and funding versus money disbursed by the business through expenses

Question 8

What does cash management entail?

Answer 8

Management of cash inflows and outflows to support cash needs of the venture

Question 9

Define corporate entrepreneurship.

Answer 9

Development of new ideas, opportunities, or ventures through formal research and development processes that focused on the corporation’s strategy and goals

Question 10

What is creative destruction?

Answer 10

Theory developed by Joseph Schumpeter stating that entrepreneurial innovation is the disruptive force that creates and sustains economic growth, though in the process, it destroys established companies and disrupts employment

Question 11

What does due diligence involve?

Answer 11

Conducting the necessary research and investigation to make informed decisions that minimize risk

Question 12

Define e-commerce.

Answer 12

Electronic transactions, particularly over the Internet, for the exchange of goods and services

Question 13

What is the entrepreneurial journey?

Answer 13

Your exploration to discover if entrepreneurship is right for you

Question 14

What is the entrepreneurial process?

Answer 14

Set of decisions or actions that can be outlined and followed as a guide to developing or adjusting a venture

Question 15

Define entrepreneurial spirit.

Answer 15

Describes a quality of those individuals who are productive self-starters focused on making changes happen

Question 16

What is an entrepreneurial venture?

Answer 16

Any business, organization, project, or operation of interest that includes a level of risk in acting on an opportunity that has not previously been established

Question 17

What is a framework in entrepreneurship?

Answer 17

Structure or outlined process that can be used to accomplish entrepreneurial goals through problem solving, idea generation and validation, and brainstorming

Question 18

Define franchising.

Answer 18

Form of licensing that allows the business (franchisor) to share its business model to expand through various distributors (franchisees) for a fee

Question 19

Who is an independent contractor?

Answer 19

(Also, freelancer) People or businesses that provide work similar to an employee without being part of the payroll for the contracting business, and who pay their own taxes and pay for their own benefits

Question 20

What is innovation?

Answer 20

New idea, process, or product, or a change to an existing product or process

Question 21

Define intrapreneur.

Answer 21

Employee who acts as an entrepreneur within an organization, rather than going solo

Question 22

What is a milestone?

Answer 22

Significant decision point or significant accomplishment

Question 23

What is a patent?

Answer 23

Legal grant of protection for an inventor over the rights, usage, and commercialization of an invention for a set time period

Question 24

Who is a serial entrepreneur?

Answer 24

Entrepreneur who becomes involved in starting multiple entrepreneurial ventures

Question 25

What is a situational opportunity?

Answer 25

One that becomes available, depending on factors such as where you work, your family obligations, your idea or invention, your unique creative expression, or a recent career search or job change

Question 26

Define soft launch.

Answer 26

(Also, soft open) Launching a venture for a limited time frame or audience to gain experience, insights, and feedback about the target market or consumer

Question 27

What is a target market?

Answer 27

Specific group of consumers for which a company seeks to provide a good or service

Question 28

What is a venture?

Answer 28

Startup company or organization that conducts business or is created to satisfy a need

Question 29

Define vertical integration.

Answer 29

Strategy of gaining control over suppliers of raw materials and distributors of finished products to expand or control the relevant supply chain