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MGMT 3000 > MGMT 3000 Chapter 6 > Flashcards

MGMT 3000 Chapter 6 Flashcards

1
Q

what is entrepreneurship ?

A

the process of initiating a business venture, organizing the necessary resources, assuming the associated risks and enjoying the rewards

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2
Q

what is an entrepreneur?

A

someone who engages in entrepreneurship

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3
Q

what are the 5 types of small business owners?

A
  • idealist
  • optimizers
  • hard workers
  • jugglers
  • sustainers
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4
Q

what is an idealist?

A

rewarded by chance to work on something new and creative

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5
Q

what is an optimizer?

A

get personal satisfaction from being business owners

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6
Q

what is a hard worker?

A

thrive on the challenge of building a larger, more profitable business

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7
Q

what is a juggler?

A

higher energy person who enjoy handling every detail of their own business

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8
Q

what is a sustainer?

A

enjoy chance to balance work and personal life

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9
Q

how many minority owned businesses are in the country ?

A

11 million, nearly twice as many as existed a decade ago

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10
Q

how many people do minority firms employ?

A

6.3 million people

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11
Q

how much revenue do minority businesses generate annually?

A

$2 trillion

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12
Q

what type of minority owned businesses have shown the greatest amount of growth over the past 10 years, increasing 34% ?

A

hispanic - latino owned

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13
Q

what percent of small business owners are white?

A

78%

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14
Q

true or false? immigrants were almost twice as likely as native born Americans to start a new business in the US in recent years

A

true

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15
Q

what percent of new entrepreneurs were immigrants?

A

30 percent

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16
Q

true or false? women have less access to capital because they have to work harder to convince others that they have what it takes to be successful

A

true

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17
Q

true or false? women have less access to capital because they have to work harder to convince others that they have what it takes to be successful

A

true

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18
Q

true or false? women have less access to capital because they have to work harder to convince others that they have what it takes to be successful

A

true

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19
Q

true or false? women have less access to capital because they have to work harder to convince others that they have what it takes to be successful

A

true

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20
Q

what are the traits of entrepreneurs?

A
  • autonomy
  • entrepreneurial sacrifice
  • high energy
  • locus of control
  • self - confidence
  • need to achieve
  • tolerance to ambiguity
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21
Q

what is the suggested process of starting an online business?

A
  • find a market niche
  • create a professional website
  • choose a domain name
  • know when to pivot
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22
Q

what is social entrepreneurship?

A

focuses primarily on creating social value by providing solutions to social problems, with a secondary purpose of generating profit and returns

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23
Q

what is a benefit corporation (B corporation)?

A

entrepreneurs who want to include a strong social or environmental component for-profit business

24
Q

what is the process for launching a start up?

A
  1. come up with viable idea
  2. create a business plan
  3. choosing a legal structure
  4. arrange financing
25
Q

what is the main reason for starting a business?

A

joined a family business

26
Q

what are the two main sources of new business ideas?

A
  1. in depth understanding of industry or profession
  2. market niche spotted
27
Q

what is a business plan?

A

a statement specifying the business details prepared by an entrepreneur prior to opening a new business

28
Q

what are some characteristics of a business plan?

A
  • well defined
  • clear and realistic projections
  • profile potential customers
  • have detailed information about industry
  • highlight critical risks
  • spell out the sources
29
Q

what are the types of legal structure?

A
  • sole proprietorship
  • partnership
  • corporation
30
Q

what is a sole proprietorship?

A

an unincorporated business owned by and individual for profit

31
Q

what type of legal structure make up a majority of businesses in the US?

A

sole proprietorship

32
Q

does a sole proprietor have unlimited liability ?

A

yes

33
Q

what is a partnership?

A

an unincorporated business owned by two or more people

34
Q

are partnerships easy to start?

A

yes

35
Q

when do partnerships typically dissolve?

A

after 5 years

36
Q

what type of agreement do partnerships use?

A

formal partnership agreement

37
Q

do partnerships have unlimited liability?

A

yes

38
Q

what is a corporation?

A

artificial entity created by the state and existing apart from its owners

39
Q

are corporations liable for its actions and must pay taxes on its income?

A

yes

40
Q

who is liable if a corporation gets sued?

A

the corporation, not the owners

41
Q

what are the two types of arranging financing?

A

debt financing and equity financing

42
Q

what is debt financing?

A

borrowing money that has to be repaid at a later date to start a business

43
Q

what is a common source of debt financing for a start up?

A

borrowing from family or friends

44
Q

what is equity financing?

A

funds that are invested in exchange for ownership in the company

45
Q

what are the types of equity financing?

A
  • angel financing
  • venture capital firm
  • crowd funding
46
Q

what is angel financing?

A

wealthy individuals who believe in the idea for the start up and are willing to invest their personal funds to help the business get started

47
Q

what is a venture capital firm?

A

group of companies or individual that invests money in new or expanding businesses for ownership and potential profits

48
Q

what is crowd funding?

A

rating capital be receiving small amounts of money from a large number of investors, usually through social media and the Internet

49
Q

what is a business incubator?

A

provides shared office space, management support services and management and legal advice to entrepreneurs

50
Q

what is a co working facility ?

A

open office environment that is shared by multiple freelance entrepreneurs as well as corporate telecommuting employees or others who do not have a regular officew

51
Q

what is franchising?

A

the firm collects upfront and ongoing feeds in exchange for letting other firms offer products and services under its brand name and using its processes

52
Q

what is the powerful advantage of franchising?

A

management help is provided by the owner, have a brand name

53
Q

what are disadvantages of franchises?

A
  • lack of control that occurs when franchisors want every business managed the same way
  • expensive and high start up costs
54
Q

what percent of McDonalds are franchise operations?

A

93%

55
Q

how much must franchisee applicants for McDonalds have in liquid assets and what franchise fee must they pay?

A

$500,000 and $45,000

56
Q

what percent to McDonalds franchisees pay of store revenue to McDonalds each year?

A

82%

MGMT 3000 (9 decks)

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