Business Management Chapter 6
A sentence describing the purpose of a business is a(n) ______
mission statement
A person who starts a new business or purchases an existing business is a(n) ___________
entrepreneur
A description of a business and why it will be successful is a(n) ________
executive summary
transferable skills (foundation skills)
help an individual perform in the workplace or gain success in a career
pro forma balance sheet
reports the assets, liabilities, and net worth of the business
mentor
someone with experience who can provide advice, suggestions, and ideas
3 ways an entrepreneur can open a business
start a new business, purchase an existing one, buy a franchise
leadership
the ability to influence others to reach a goal
Why are problem-solving and decision-making skills essential to an entrepreneur?
to keep a business running smoothly they must be able to take charge of situations and quickly make decisions
__________ skills help an individual perform in the workplace or gain success in a career
transferable
2 sources of equity financing
venture capital and angel investors
A license to sell a company's goods or services within a certain territory or location is a(n) _______
franchise
The ______ provides an overview of the industry and market that the business will serve
market analysis
venture capital
money invested in a business by investors who form partnerships or groups to pool investments
________ is something which entrepreneurs relive in or are enthusiastic about
passion
angel investors
private investors who fund start-up businesses
Entrepreneurs willingly risk resources to start and run a business in pursuit of_______
profit
5 P's of Entrepreneurship
profit, passion, persistence, people, purpose
pro forma income statement
projects revenue and expenses to show whether or not a business is profitable
capital structure
refers to the way a business is financed
pro forma cash flow statement
reports anticipated sources and uses of cash from operations, investing, and financing activities
market research
the gathering and analyzing of information about a business
start-up capital
the money necessary to start and open a business
cash flow
the movement of money into and out of a business
planning
the process of setting goals and deciding how to accomplish them
assets
the property or items of value a business owns
trait
a distinguishing characteristic or quality that makes each person unique
mission statement
a sentence describing the purpose of the business
business plan
a written statement of goals and objectives for a business with a strategy to achieve them
pro forma financial statements
financial statements based on estimates of future business performance, sales, and expenses
Is a college degree needed to become an entrepreneur?
No but they have to have good problem solving skills, good at math, reading, and writing, good money skills, and good technology skills
An independent agency of the federal government dedicated to helping entrepreneurs start, build, and grow their business is the ________
Small Business Association (SBA)
market
all the people and organizations that might purchase a product
collateral
an asset pledged that will be claimed by the lender if the loan is not repaid
Private investors who fund a start-up business are _______
angel investors
Property or items of value which a business owns are ______
assets
debt financing
borrowing money that must be repaid for use in the business
equity financing
capital brought into the business in exchange for a percent of ownership in the business
What is the advantage of becoming an entrepreneur by buying a franchise?
cash flow from the business starting on day 1, experience of past employees, guidance of past owner
A business plan includes______
financial projections
