Ch 1 vocab - Leo Lin
Business life cycle - existence stage
A business being in operation but not yet stable in terms of markets, operations, or finances.
Franchise
A business established or operated under an authorization to sell or distribute a company's goods or services in a particular area
Partnership
A business in which two or more persons share business financial responsibilities
Business life cycle - pivot or persist stage
A business pivots or persists to new strategy's as needed
Business life cycle - survival stage
A business regularly taking on new customers and generating consistent income
non-profit
A business whose goal is to provide a service rather than to make a profit
B2C (business-to-consumer)
A commercial exchange (e.g., products or services) between businesses and consumers conducted over the Internet.
B2B (business-to-business)
A commercial exchange (e.g., products or services) between businesses, typically enabled by the Internet or electronic means.
Salary
A fixed amount of money paid to an employee for each pay period.
C Corporation
A legal entity that offers limited liability with double taxation.
S corporation
A legal entity that offers limited liability with single taxation.
Stakeholder
A person or organization with an interest in the success of a company
Minimum viable product (MVP)
A product with just enough features to satisfy early customers, and to provide feedback for future product development.
Commission
An amount paid to an employee for completing a task
Design Thinking Process - define stage
Analyze observations and info gathered during the empathize stage. Define the core problem as a problem statement
Design Thinking Process - ideate stage
Design team designs solutions, ideas to keep the most realistic and innovative ideas that satisfy the customer best.
Final Test stage
Design team reviews and refines products
Digital Goods
Goods that can be delivered over a digital network (Non Physical)
Employees
Individuals that work while following company policies
LLC (Limited Liability Company)
Limited liability, pass through income taxation, flexibility
CFO (Chief Financial Officer)
Manager responsible for managing the financial risks of the corporation (and financial planning/record-keeping)
Design Thinking Process - empathize stage
Observe, engage, and empathize with customers to understand their needs
Business life cycle - take off stage
Owners decide if they want to be a big business
Business life cycle - exit plan stage
Owners make a profit from selling their ownership
Business life cycle - resource maturity stage
Owners separate financially and operationally from the business
Stockholder
The owner of one or more shares of stock
Business life cycle - success stage
The third stage of the business life cycle marked by the firm being established in its market, operation, and finances.
Sole Proprietorship
a business owned and managed by a single individual
Entrepreneur
a person who organizes and operates a business or businesses, taking on greater than normal financial risks in order to do so.
Piecework
a wage based on a rate per unit of work completed
Small Business
an independent business with fewer than 500 employees
Tangible
can be touched
Design Thinking Process - prototype stage
create a model designed to solve consumers' problems or validate ideas that you can test in the next stage of the process
COO (Chief Operating Officer)
is responsible for day to day operations of a corporation
Equity
non cash compensation commonly offered to employees in place of cash or in addition to lower salary
Founder
person who establishes an organization or business
Capital
the account used to summarize the owner's equity in a business
Ecommerce
the buying and selling of goods and services over the internet
CEO (Chief Executive Officer)
the person with the highest rank in a company