Test 2 Flashcards
How do startups raise money?
start with friends and family, then angel investors, then venture capital.
intellectual property
It is the product of the human intellect that is embodied in the goods and services a company offers and by which the company is known
Ethics and stewardship
legal is the most basic level. Ethical is a step up. Moral is the
highest level and asks the question “How can I do the most good with my business?”
corporate responsibility
a belief that corporations have a social responsibility beyond pure profit
What does an LLC do?
they provide the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership
What are some disadvantages of the sole-proprietor business?
Possible Limited Life and Self-Employment Taxes
franchise
one business owner licensing trademarks and methods to an independent entrepreneur for a prescribed period of time.
What advice does the textbook have for franchisors and franchisees?
What are the advantages of franchising for franchisors and franchisees?
- Increased ability for franchisor to expand
- Recognized name, product, and operating concept
- Management training and assistance
- Financial assistance
horizontal merger
occurs between companies in the same industry
vertical merger
the merger of two organizations that have a buyer-seller relationship or, two or more firms that are operating at different levels within an industry’s supply chain.
acquisition
occurs when a company purchases the assets of another business and usually permits the acquired company to continue operating as it did prior to the acquisition
four entrepreneurial Types
- Builder - office square footage and size of payroll
- Opportunist- measures success in financial terms
- Specialist - They measure success based on their personal income
- Innovator - They measure success based on impact; it’s about the mission, not the money
VC
Venture Capital - professionally managed funds that provide high-potential start-ups with funds in exchange for management fees and equity or shares of stock in the start-up
Angel investor
very early participants in funding start-ups
startup accelerator
program that helps early-stage companies grow and a mentor-based program that provides guidance, support and limited funding in exchange for equity
SISP
solution in search of a problem - a proposal that doesn’t solve a problem or provide value
What is a “tarpit” idea
a startup idea that seems good, but has been tried by many founders before with little to no success
When coming up with startup ideas, what is an “idea space” and what are some good
examples?
Artificial intelligence and web development
What are the 6 main reasons startups fail according to the textbook?
- Lack of Planning
- Failure to Delegate
- Unwillingness to Change
- Forgetting That Cash is King
- Lack of Objective Targets
- Failure to Ask the Right Questions
the best way to come up with a company is to what?
find a problem
worth solving
What is the difference between management and leadership?
leaders tell people where to be and managers get them there orderly and what to do
What is the most important skill of a manager?
Interpersonal excellence
4DX concept is based on the 4 principles of what?
focus, leverage, engagement, and accountability
What is the difference between a lead measure
and a lag measure?
A lead measure indicates whether you are likely to achieve a goal, while a lag measure indicates whether you have achieved a goal
the difference between intrinsic and extrinsic motivators
Intrinsic motivation is the drive to complete a task because it’s interesting or enjoyable. Extrinsic motivation is the drive to complete a task for an external reward
What are the acquired needs theory of management and what motivates them?
- Achievement - a sense of accomplishment and recognition for their efforts rather than external rewards
- affiliation - sense of belonging and social recognition
- power -desire to influence, control, and lead others.
risk tolerance
the level of risk an entity or investor is willing to take
Human Resources
Optimizing employee management for organizational success
What is the core function of HR
Recruiting
Right to work state
fire for a good reason, bad reason, no reason at all
Protected classes
- Race, ethnicity, national origin
- Gender
- Sexual orientation
- Religion
- Age
- Disability
- Pregnancy
Termination
How you fire is important for morale
How business benefit from diversity
Innovation
Challenges
§ Stereotypes
§ Culture confusion
§ Communication
Current causes of worker shortage
Pandemic
Great resignation
Changing worker preferences
!Demographic changes!
What should be done about the worker shortage?
- Political Left Solutions - Bring in more temporary migrants
- Political Right Solutions - Weaken child labor laws
