Entrepreneurship- Smartbook 2

Retail Arbitrage

An approach to business where the entrepreneur buys something at a severely reduced retail price and then resells it at a price closer to the typical retail price.

Imitative Strategy

An overall strategic approach in which the entrepreneur does more or less what others are already doing

A _____________ is a legal agreement granting rights to use a particular piece of intellectual property

License

The ___________ pays the __________ for the rights to use a particular piece of intellectual property

Licensee; licensor

Radical Innovation Strategy

Rejecting existing ideas, and presenting a way to do things differently.

A(n) ______________ is a payment to a licensor based on the number or value of items that are sold.

Royalty

incremental strategy

Taking an idea and offering a way to do something slightly better than it is done presently.

Licensee

The person or firm that is obtaining the rights to use a particular piece of intellectual property.

Licensor

The person or organization that is offering the rights to use a particular piece of intellectual property.

Creativity

The process of producing an idea or opportunity that is novel and useful

What are some ways to take the casual approach to start a new business

- Chance: being at the right place at the right time - Education and Expertise: applying what was learned in school or developed on our own - idea websites

causal model of entrepreneurship

- The causal approach is one in which you want to create a particular product or service that does not yet exist, and to achieve that end, you have to cause the product or service to exist. - This can mean you will have to learn new skills, or find others to help you achieve your end.

Which of the following is a rarely used source of business ideas

- Universities and Government agencies

Educational Institutions and government agencies develop few new technologies but these technologies often for the better of humanity

False