midterm

Question 1

gazelle

Answer 1

small firm with great prospects for growth

Question 2

entrepreneurial opportunity

Answer 2

an economically attractive and timely opportunity that creates value for interested buyers or end users

Question 3

bootstrapping

Answer 3

doing more with less in terms of resources, and controlling other resources without ownership, i.e. bartering

Question 4

social entrepreneurship

Answer 4

entrepreneurial activity whose goal is to find solutions to social needs, problems, and opportunities.

Question 5

reluctant entrepreneur

Answer 5

someone who becomes an entrepreneur as a result of some sever hardship

Question 6

corporate refugee

Answer 6

someone who becomes an entrepreneur to escape an undesirable job situation

Question 7

four types of entrepreneurial motivation

Answer 7

personal fulfillment, personal satisfaction, independence, financial rewards

Question 8

six descriptors of entrepreneurs

Answer 8

1communication and determnination

2. Leadership
3. Opportunity obsession
4. tolerance of risk, ambiguity, and uncertainty
5. creativity, self-reliance, and adaptability
6. motivation to excel

Question 9

opportunity recognition

Answer 9

identification of potential new products or services that may lead to promising businesses

Question 10

entrepreneurial alertness

Answer 10

readiness to act on existing but unnoticed business opportunity

Question 11

new market ideas

Answer 11

startup centered around providing customers with an existing product or service not available in their market

Question 12

new technology ideas

Answer 12

startup involving new, or relatively new, technology, centered with providing a new product

Question 13

new benefit ideas

Answer 13

startup centered around providing customers with new or improved products or services

Question 14

serendipity

Answer 14

a facility for making desirable discoveries by accident

Question 15

general environment

Answer 15

broad environment, encompassing factors that influence most businesses in a society

Question 16

industry environment

Answer 16

environment that includes factors that directly impact a given firm and all of its competitors

Question 17

competitive environment

Answer 17

environment that focuses on strength, position, and likely moves/countermoves of competitors

Question 18

capabilities

Answer 18

a company’s routines and processes that can coordinate the combined use of its productive assets in order to achieve desired outcomes

Question 19

core competencies

Answer 19

capabilities that provide a firm with a competitive edge and reflect its personality

Question 20

feasibility analysis

Answer 20

a preliminary assessment of a business idea that gauges whether the venture envisioned is likely to succeed

Question 21

porters five forces

Answer 21

Threat of entry, threat of substitutes, bargaining power of suppliers, bargaining power of buyers, competitors

Question 22

product oriented philosophy

Answer 22

belief that the product is the single most important thing, i.e. Build a better mousetrap

Question 23

sales oriented philosophy

Answer 23

belief of pushing the product

Question 24

customer oriented philosophy

Answer 24

belief that everything, from beginning to end, revolves around the customer

Question 25

core product/ service

Answer 25

fundamental benefits sought out by customers

Question 26

actual product/service

Answer 26

basic physical product or service that delivers those benefits

Question 27

augmented product/service

Answer 27

basic product/service plus any extra benefits to the consumer that they prompt a purchase

Question 28

customer profile

Answer 28

description of potential customers in a target market

Question 29

direct forecasting

Answer 29

method in which sales is the estimated variable

Question 30

indirect forecasting

Answer 30

method in which variables related to sales are used to project future sales

Question 31

total assets =

Answer 31

debt + owner’s equity

Question 32

debt-

Answer 32

money borrowed to invest into a company

Question 33

owners equity

Answer 33

owners own money being used to invest into a company

Question 34

income statement

Answer 34

aka profit and loss statement, sales-expenses=profit

Question 35

gross profits

Answer 35

=sales sales-cost of goods sold

Question 36

net income

Answer 36

=earnings that my distributed to owners or reinvested into the company

Question 37

five factors that drive profits

Answer 37

1. amount of sales
2. cost of goods sold
3. operating expense
4. interest expense
5. taxes

Question 38

percentage of sales technique

Answer 38

method for forecasting asset requirements

Question 39

retained earnnings

Answer 39

refer to the percentage of net earnings not paid out as dividends, but retained by the company to be reinvested in its core business, or to pay debt. It is recorded under shareholders’ equity on the balance sheet