Term
| Entrepreneurship Definition #1 |
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Definition
| Entrepreneurship is the pursuit of opportunity without regard to resources currently under control |
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Term
| Entrepreneurship Definition #2 |
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Definition
Entrepreneurship starts with the individual entrepreneurs: Who I am, What I know, Whom I know. Effectuation.
- Second definition adds the entrepreneur himself into the definition |
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Term
All business is based on the equation:
(central equation of business) |
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Definition
| Profit = Revenues - Costs |
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Term
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Definition
| Revenue p/unit - VC p/unit = CM |
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Definition
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Term
| Net profit before taxes calculation |
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Definition
| Units sold after break-even * CM |
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Term
| contribution margin contributes to... |
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Definition
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Definition
| materials, DL, sales commission |
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Definition
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Definition
Revenues - COGS (VC) =
GP
GP- FC =
Net Profit before Int & Taxes
Net Profit before Int & Taxes - Int/Taxes =
Net Profit After Int & Taxes |
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Term
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Definition
| excess of revenue (R) over cost (C) |
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Term
| need to know profit because |
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Definition
- key to survival and growth of business
- convince investors to invest and continue investing
- evaluating employee performance
- selecting future projects
- building credibility in the marketplace |
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Term
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Definition
- operating expenses - related to core business: direct raw materials, direct labor, factory utilities
- indirect expenses: office rent, SG&A, R&D
- extraordinary expenses
- taxes |
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Term
| relationship between IS & BS |
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Definition
| P/L from IS is transferred to BS to increase owner's equity from the previous year |
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Term
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Definition
- allows calculation of PM accurately
- cash flow will be reduced just one time by full price for machine -> consequently depre is a non-cash expense over lifetime of machine |
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Term
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Definition
| amount of money a company spends even if it does not sell a single unit (salaries, office maintenance, marketing, etc) |
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Definition
| price at which company is traded on public stock exchange from minute to minute |
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Definition
| Net profit / total investment |
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Definition
| net profit / total shareholders equity |
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Definition
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Definition
| net profit / number of shares outstanding |
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Definition
| market price of the share / EPS |
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Definition
money for expenses to find company to purchase; usually results in equity in company for investors
(Gatewood & Daughtery) |
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Term
| retail vs. wholesale (value chain) |
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Definition
value chain allows for control of cost and quality
-> getting rid of the middle man allows for more control
(Salinas & Salinas) |
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Term
| production cycles: long vs short |
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Definition
relates to the burn rate
EX.
long - medicine
short - hamburger
(Heather Evans) |
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Term
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Definition
potential for growth limits for scalability:
- people (talent)
- demand
(Chic Thompson) |
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Definition
bribes to pay for access and best space
(Salinas & Salinas) |
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Term
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Definition
benefiting from someone's patent. Patent infringement results in legal action in US whereas there is usually no recourse in developing countries
(Howard Head) |
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Term
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Definition
a company's system for collecting, analyzing, and communicating financial information
allows entrepreneur to:
- measure business performance
- make business decisions
- meet regulatory req's |
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Term
| Bonus: space between stimulus and response |
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Definition
importance of thinking before you act
>
difference between how you act when thinking and not thinking (i.e. getting slapped at a bar) |
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Term
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Definition
| refers to right granted to anyone who invents or discovers any new and useful process, machine, etc |
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Definition
getting your business started through informal financing
- can be bartering, credit cards, etc |
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Definition
| a name, term, sign, logo, that identifies the products or services of a company and differentiates them from competitors |
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Definition
| "renting" the right to use a brand name to sell products |
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Definition
a business that markets a product or service in the exact manner prescribed by the developer
components: non-compete clause, territories |
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Term
| franchise agreement components |
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Definition
- franchise fee -> operating model, training, brand
- start-up fee
- royalties |
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Definition
| the time period a firm can realistically enter a new market |
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Definition
| process by which new products and technologies developed by entrepreneurs over time make existing products and technologies obsolete |
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| primary vs secondary research |
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Definition
primary: field research
secondary: research already available |
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Definition
| Entrepreneurship is the right to chose your response. Response to contingency, using contingency as a resource in the entre process |
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| legal structure of a business |
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Definition
| liability (personal vs firm), taxes, control |
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Definition
cash / liabilities
EX. ROI |
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Term
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Definition
| A payment made for the use of property, especially a patent , copyrighted work, or franchise |
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Definition
| balance skills, personality traits. Create grid to evaluate personalities, abilities, connections |
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Term
| Key parts of business plan |
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Definition
1. Brief Description of Company
2. Mission / Value Proposition
3. Product/Service being offered
4. Competitive advantages
5. Brief financial forecast
5. Management team
6. Current advisors
7. Financing requirements and return expected
- Operations, marketing plan |
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