CHAPTER 6 Flashcards
Small Business
A company that is independently owned and operated, is not dominant in its field, and employs fewer than 500 people.
Entrepreneurial Spirit
The positive, forward-thinking desire to create profitable, sustainable business enterprises.
Business Plan
A document that summarizes a proposed business venture, its goals, and plans for achieving those goals.
Pivoting
Adjusting a firm’s business model when a better opportunity presents itself.
Business Incubators
Facilities that help early-stage entrepreneurial teams develop ideas into workable business models and establish company frameworks for commercializing products.
Business Accelerators
Organizations that work with existing companies with the primary goal of making them more attractive to investors.
Seed Money
The first infusion of capital used to get a business started.
Microlenders
Organizations, often not-for- profit, that lend smaller amounts of money to business owners who might not qualify for conventional bank loans.
Venture Capitalists (VCs)
Investors who provide money
to finance new businesses in exchange for a portion of ownership, with the objective of selling their shares at a significant gain.
Angel Investors
Private individuals who invest money in start-ups, usually earlier in a business’s life and in smaller amounts than VCs are willing to invest or banks are willing to lend.
Initial Public Offering (IPO)
A corporation’s first offering of shares to the public.
Crowdfunding
Soliciting project funds, business investment, or business loans from members of the public.
Franchise
A business arrangement in which one company (the franchisee) obtains the rights to sell the products and use various elements of a business system of another company (the franchisor).
Franshisor
A company that licenses ele- ments of its business system to other companies (franchisees).
Franchisee
A business owner who pays for the rights to sell the products and use the business system of a franchisor.
