chapter 18- entrepreneurship Flashcards
limited liability corporation (LLC)
a type of business that combines the advantages of the sole proprietorship, partnership and corporation
entrepreneur
an individual who is willing to pursue opportunities in situations that others view as problems or threats
family business feud
a type of family conflict that can lead to small business failure
entrepreneurship
risk-taking behavior in pursuit of business success
social entrepreneur
a person who takes risks to find new ways to solve pressing social problems
venture capitalist
people who make large investments in new ventures in return for an equity stake in the business
equity financing
a financing option that gives ownership shares to outsiders in return for their financial investments
angel investor
a wealthy individual willing to invest in return for equity in a new venture
business incubator
a facility that offers services to help new businesses get established
family businesses
companies that are owned and financially controlled by family members
corporation
a legal entity that exists separately from its owners
limited partnership
a type of business in which partnership owners share profits but responsibility for losses is limited to original investments
first-mover advantage
a situation that arises from being first to exploit a niche or enter a market
initial public offering (IPO)
an initial selling of shares of stock to the public at large
necessity-based entrepreneurship
a situation that occurs when people start new ventures because they have few or no other employment options
succession plan
an outline of how the leadership transition and related financial matters will be handled
partnership
a business formed when two or more people agree to contribute resources to start and operate a business together
business plan
an outline that describes the direction for a new business and the financing needed to operate it
small business
an organization that has fewer than 500 employees, is independently owned and operated, and does not dominate its industry
general partnership
a type of business in which owners share management and responsibility for debts and losses
small business development centers
organizations that offer guidance to entrepreneurs and small business owners on how to set up and manage business operations
sole proprietorship
a business run by individual pursuing business for a profit
succession problem
the issue of who will run the business when the current head leaves
intrapreneurs
individuals who display entrepreneurial behavior as employees of larger firms
debt financing
borrowing money from another person, a bank, or a financial institution
