chap 2 Flashcards
What is an action plan?
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
Define benchmarking.
Comparing one’s own company’s performance with an industry average, a leader within the industry, or a market segment
What is bootstrapping?
Funding strategy that seeks to optimize use of personal funds and other creative strategies (such as bartering) to minimize cash outflows
What is the breakeven point?
Level of operations that results in exactly enough revenue to cover costs
What does a business model outline?
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
Define capitalism.
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
What is cash flow?
Money collected by the business through revenue and funding versus money disbursed by the business through expenses
What does cash management entail?
Management of cash inflows and outflows to support cash needs of the venture
Define corporate entrepreneurship.
Development of new ideas, opportunities, or ventures through formal research and development processes that focused on the corporation’s strategy and goals
What is creative destruction?
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
What does due diligence involve?
Conducting the necessary research and investigation to make informed decisions that minimize risk
Define e-commerce.
Electronic transactions, particularly over the Internet, for the exchange of goods and services
What is the entrepreneurial journey?
Your exploration to discover if entrepreneurship is right for you
What is the entrepreneurial process?
Set of decisions or actions that can be outlined and followed as a guide to developing or adjusting a venture
Define entrepreneurial spirit.
Describes a quality of those individuals who are productive self-starters focused on making changes happen
What is an entrepreneurial venture?
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
What is a framework in entrepreneurship?
Structure or outlined process that can be used to accomplish entrepreneurial goals through problem solving, idea generation and validation, and brainstorming
Define franchising.
Form of licensing that allows the business (franchisor) to share its business model to expand through various distributors (franchisees) for a fee
Who is an independent contractor?
(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
What is innovation?
New idea, process, or product, or a change to an existing product or process
Define intrapreneur.
Employee who acts as an entrepreneur within an organization, rather than going solo
What is a milestone?
Significant decision point or significant accomplishment
What is a patent?
Legal grant of protection for an inventor over the rights, usage, and commercialization of an invention for a set time period
Who is a serial entrepreneur?
Entrepreneur who becomes involved in starting multiple entrepreneurial ventures
