chapter 5-6 Flashcards
management and leadership, starting managing your own buisness
angel investors
Individual investors or groups of experienced investors who provide financing for start-up businesses by investing their own funds.
business plan
A formal written statement that describes in detail the idea for a new business and how it will be carried out; includes a general description of the company, the qualifications of the owner(s), a description of the product or service, an analysis of the market, and a financial plan.
debt
A form of business financing consisting of borrowed funds that must be repaid with interest over a stated time period.
entrepreneurs
People with vision, drive, and creativity who are willing to take the risk of starting and managing a business to make a profit, or greatly changing the scope and direction of an existing firm.
equity
A form of business financing consisting of funds raised through the sale of stock (i.e., ownership) in a business.
intrapreneurs
Entrepreneurs who apply their creativity, vision, and risk-taking within a large corporation, rather than starting a company of their own.
small business
A business with under 500 employees that is independently managed, is owned by an individual or a small group of investors, is based locally, and is not a dominant company in its industry.
Small Business Administration (SBA)
A government agency that speaks on behalf of small business; specifically it helps people start and manage small businesses, advises them in the areas of finance and management, and helps them win federal contracts.
Small Business Investment Company (SBIC)
Privately owned and managed investment companies that are licensed by the Small Business Administration and provide long-term financing for small businesses.
venture capital
Financing obtained from venture capitalists, investment firms that specialize in financing small, high-growth companies and receive an ownership interest and a voice in management in return for their money.
autocratic leaders
Directive leaders who prefer to make decisions and solve problems on their own with little input from subordinates
coercive power
Power that is derived from an individual’s ability to threaten negative outcomes.
conceptual skills
A manager’s ability to view the organization as a whole, understand how the various parts are interdependent, and assess how the organization relates to its external environment.
consensual leaders
Leaders who encourage discussion about issues and then require that all parties involved agree to the final decision.
consultative leaders
Leaders who confer with subordinates before making a decision but who retain the final decision-making authority.
contingency plans
Plans that identify alternative courses of action for very unusual or crisis situations; typically stipulate the chain of command, standard operating procedures, and communication channels the organization will use during an emergency.
controlling
The process of assessing the organization’s progress toward accomplishing its goals; includes monitoring the implementation of a plan and correcting deviations from the plan.
corporate culture
The set of attitudes, values, and standards that distinguishes one organization from another.
decisional roles
A manager’s activities as an entrepreneur, resource allocator, conflict resolver, or negotiator.
democratic leader
Leaders who solicit input from all members of the group and then allow the members to make the final decision through a vote.
