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Ch. 4 & 6 - Busi 1000
Memorial University of Newfoundland
37
Business
Undergraduate 1
06/02/2017

Additional Business Flashcards

 


 

Cards

Term
Small Business
Definition
- An independently owned and managed business that does not dominate its market

- An owner-managed business with fewer than 100 employees
Term
A New Venture
Definition
- A recently formed commercial organization that provides goods and/or services for sale

- Has become operational in the past 12 months
- Adopts any of the main organizational forms
- Sells goods or services
Term
Entrepreneurship
Definition
The process of identifying an opportunity in the marketplace and accessing the resources needed to capitalize on it
Term
Entrepreneur
Definition
A business person who accepts both the risks and the opportunities involved in creating and operating a new business venture
Term
Intrapreneurs
Definition
People who create something new within an existing large firm or organization
Term
Percentage of Business Sizes in Canada
Definition
Small Business (less than 100 employees) - 98.2%
Medium-sized business (100 - 499 employees) - 1.6%
Large Businesses (500+ employees) - 0.2%
Term
Private Sector
Definition
The part of the economy made up of companies and organizations not owned or controlled by the government
Term
3 Key Elements of Entrepreneurship
Definition
1) The Entrepreneur
2) The Opportunity
3) Resources
Term
Parts of a Successful Entrepreneurial Idea
Definition
The idea...
- creates or adds value for the customer
- provides a competitive advantage that can be sustained
- is marketable and financially viable
- has low exit costs
Term
Parts of a Business Plan
Definition
- Cover Page
- Executive Summary
- Table of Contents
- Company Description
- Product or Service Description
- Marketing
- Operating Plan
- Management
- Financial Plan
- Supporting Details/Appendix
Term
Franchise
Definition
An arrangement that gives franchisees (buyers) the right to sell the product of the franchiser (the seller)
Term
Main Jobs of an Entrepreneur
Definition
1) Identify and opportunity
2) Access resources
Term
Bootstrapping
Definition
- Doing more with less
- Financing techniques whereby entrepreneurs make do with less and use other people's resources wherever they can
Term
Two Main Types of Financing
Definition
1) Debt
2) Equity
Term
Collateral
Definition
Assets that a borrower uses to secure a loan or other credit, and that are subject to seizure by the lender if the loan isn't repaid according to the specified repayment terms

- A form of equity
Term
Examples of Equity Financing
Definition
1) Personal Savings
2) Love Money
3) Private Investors
4) Venture Capitalists
Term
Examples of Debt Financing
Definition
1) Financial Institutions
2) Suppliers (trade credit)
Term
Business Development Bank of Canada
Definition
- Government Run
- Focuses on helping small and medium businesses
- Provides financing, venture capital, and consulting strategies
Term
Incubators
Definition
Facilities that support small businesses during their early growth phase by providing basic services, office space, legal advice, and more
Term
Franchising Agreement
Definition
Stipulates the duties and responsibilities of the franchisee and the franchiser
Term
Sole Proprietorship
Definition
Business owned and usually operated by one person who is responsible for all of its debts
Term
Unlimited Liability
Definition
A person who invests in a business is liable for all debts incurred by the business; personal possessions can be taken to pay debts
Term
Partnership
Definition
A business with two or more owners who share in the operation of the firm and in financial responsibility for the firm's debts
Term
Two kinds of Partnership
Definition
General Partners & Limited Partners
Term
General Partner
Definition
- A partner who is actively involved in managing the firm and has unlimited liability
Term
Limited partner
Definition
A partner who generally does not participate actively in the business, and whose liability is limited to the amount invested in the partnership
Term
Corporation
Definition
- A business considered by law to be a legal entity separate from its owners with many of the legal rights and privileges of a person
- A form of business organization in which the liability of the owners is limited to their investment in the firm
Term
Shareholders
Definition
Investors who buy shares of ownership in the form of stock
Term
Common Stock
Definition
Shares whose owners usually have last claim on the corporation's assets (after creditors and owners of preferred stock) but who have voting rights in the firm
Term
Board of Directors
Definition
A group of individuals elected by a firm's shareholders and charged with overseeing, and taking legal responsibility for, the firm's actions
Term
Chief Executive Officer
Definition
CEO
- The highest-ranking executive in a company or organization
Term
Public Corporation
Definition
A business whose stock is widely held and available for sale to the general public
Term
Private Corporation
Definition
A business whose stock is held by a small group of individuals and is not usually available for sale to the general public
Term
Initial Public Offering (IPO)
Definition
Selling shares of a stock in a company for the first time to a general investing public
Term
Private Equity Firms
Definition
Companies that buy publicly traded companies and then make them private
Term
Income Trust
Definition
A structure allowing companies to avoid paying corporate income tax if they distribute all or most of their earnings to investors
Term
The Co-Operative
Definition
An organization that is formed to benefit its owners in the form of reduced prices and/or the distribution of surpluses at year-end
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