Intro to Entrepreneurship / Final Exam Prep

Ch. 19: What is involved in HR Hiring Decisions?

1-Behavioral Interview 2-Test 3-Ask the person to demonstrate the skill, solve a problem, or write or create something that clearly and concretely provides you with proof you need to make informed decisions.

Ch. 15: Define Sole Proprietorship

A business owned by a single individual who is responsible for all debts and claims against the business.

Ch. 15: Define Corporation

A legal "artificial" entity that is formed by filing specific documents with a state government.

Ch. 15: Define Limited liability company (LLC)

A legal form of business organization that created by filing required documents with a state government. ***Owners not personally liable for debts and actions of the business***

Ch. 15: Define Debt

A legal obligation to pay money in the future.

Ch. 13: Define Liability

A legal obligation to pay some amount at a time in the future.

Ch. 15: Define Tax Abatement

A legal reduction in taxes by a government.

Ch. 12: Define Concentrated Strategy

A marketing strategy in which a marketer selects one specific group of consumers and designs a marketing mix specifically for that group.

Ch. 12: What is Differentiated Strategy?

A marketing strategy in which a marketer selects two or more distinct groups of consumers and designs specific marketing mixes to meet their needs.

Ch. 12: What is a Undifferentiated Strategy?

A marketing strategy that uses no segmentation; assumes that all consumers have virtually identical needs and can be reached by the same marking mix.

Ch. 10: Define Word-of-Mouth

A means of spreading information about your business through the comments friends and customers make to other potential customers.

Ch. 13: What is Liquidity?

A measure of how quickly a company can raise money through internal sources by converting asset to cash.

Ch. 13: What is a Cash Flow Statement?

A statement of the sources and uses of cash in a business for a specific period of time.

Ch. 13: Define Balance Sheet

A statement of what a business owns (assets), what it owes to others (liabilities), and how much value the owners have invested in it (equity).

Ch. 13: Define Income Statement

A statement that list Revenues and Expenses and shows the amount of profit a business makes for a specified period of time. (Rev-Exp = Net Gain/Loss)

Ch. 12: Define Marketing Plan

A systematic written plan of all phases of marketing for a business, including information on the product, price, and distribution and promotion strategy, as well as a clear identification of the target market and competition.

Ch. 15: Define Angel Investor

A wealthy individual who invests in companies in relatively early stages of development.

Ch. 13: Define Managerial Accounting

Accounting methods that are specifically intended to be used by managers for planning, directing, and controlling a business.

Ch. 13: What are Operating Activities?

Activities involved in producing and selling goods and services.

Ch. 13: What is Financing Activities?

Activities through which cash is obtained from and paid to lenders, owners, and investors.

Ch. 10: Define Public Relations

Activities used to establish and promote a favorable opinion by the public.

Ch. 15: Define Accelerator

An organization that supports startup technology businesses by providing inexpensive office space, a variety of support services, and resources.

Ch. 19: Define Employee Referral

An underused, low-cost method for finding workers that rewards your employees for recommending potential candidate that would be a great employee fit.

Ch. 10: Define Viral Marketing

Any electronic equivalent of word-of-mouth advertising, i.e. email website, blogs, and etc.

Ch. 13: What is the Accounting Equation?

Assets = Liability + Owner's Equity

Ch. 12: Define Indirect Competition

Companies that provide alternatives that are dissimilar to your product/service that consumers might choose to meet a similar need.

Ch. 19: Define Job Description

Defines and discusses all the essential knowledge, skills, and abilities that are needed to fill a position.

Ch. 19: What is on-the-job training?

Delivered to the employees while they perform their regular jobs. Techniques include orientations, job instructions training, apprenticeships, internships, and assistantships, job rotation, and coaching.

Ch. 10: What is Cognitive Dissonance?

Doubt that occurs after a purchase has been made.

Ch. 19: What is the Americans with Disabilities Act?

Employers must make reasonable accommodation for limitations of qualified applicant or employee unless to do so creates undue hardship.

What are other major sources for financing a small business?

Family, friends, credit cards, trade credit, banks, and other commercial lenders.

Ch. 13: Define Financial Statements

Formal summaries of the content of an accounting system's records of transactions.

Ch. 19: Define full-time vs. part-time workers

Full-Time: employment between 30-40 hours a week. Part-Time: employment less than 30 hours a week.

Ch. 19: Define off-the-job training?

Includes lectures, special study, videos, television conferences, case studies, role-playing, simulation, programmed instructions and laboratory training.

Ch. 12: Define Secondary Research

Information already collected for some other purpose than the current problem or question.

Ch. 19: Define Internet recruiting

Method of recruiting that allows you to search a resume database or post a job description to the Web.

Ch. 15: Define Debt Capital

Money borrowed for the purpose of investment in a business.

Ch. 15: Define Equity Capital

Money contribution to the business in return for part ownership of the business.

Ch. 12: Define Primary Research

New information collected to solve a problem at hand or answer current questions.

Ch. 19: What are forms of communication for employees?

Open door policy, suggestion box, 1:1, private liaison to communicate issues to the owner.

Ch. 12: Define Direct Competition

Other companies that make similar product or provide similar services.

Ch. 15: What is the number one source of financing a small business?

Owner/Potential Owner

What are the four (4) P's of Marketing?

Price, Product, Promotion, and Place

Ch. 15: Define Small business investment companies

Private businesses that are authorized to make SBA insured loans to start-ups and small businesses.

Ch. 19: What is Titke VII of the Civil Rights Act of 1964?

Prohibits discrimination of employment based on race, color, sex, religion, or national origin.

Ch. 19: What is the Age discrimination Act?

Prohibits employers from discriminating against individuals 40 years old and older.

Ch. 19:Define Psychological Contract

Refers to employees' beliefs about the promises between the employee and the firm. / Beliefs are based on perception that promises have been made in exchange for certain employee obligations.

Ch. 19: What is the fair labor standard act?

Requires payment to most hourly employees of minimum wage and time and a half for overtime hours. Requires same wage to males and females for work requiring equal skill, effort, and responsibility in similar working conditions.

Ch. 12: What is one of the most important pieces to a Marketing Plan?

Sales Forecast

Ch. 13: Define Assets

Something the business owns that will have value in the future.

Ch. 12: What is Market Research?

Systematic collection of interpretation of data to support future marketing decisions.

Ch. 13: Define Going Concerning Concept

The accounting concept that a business is expected to continue in existence for the foreseeable future.

Ch. 13: Define Business Entity Concept

The concept that a business has an existence separate from that of its owners.

Ch. 15: Define Risk

The level of probability that an investment will not produce expected gains.

Ch. 19: Define Employee Fit (Job person it)

The match between the needs, expectations, and culture of the small business with the expectations and he skills of the individual employee.

Ch. 15: Define Cost of Capital

The percentage cost of obtaining future funds.

Ch. 12: What is Market Segmentation?

The process if dividing the market into groups that have somewhat homogeneous needs for a product/service (i.e. Geographic, demographic, benefit)

Ch. 10: What is Personal Selling?

The process of selling your product and service. This includes prospect and evaluate, prepare, present, close, and follow-up.

Ch. 10: What is Customer Relation Management (CRM)?

The process of tracking the customer's different contacts with the firm, and using this data to help improve sales as well as the customer's experience.

Ch. 13: What is Investing Activities?

The purchase and sale of land, buildings, equipment, and securities.

Ch. 10: Define Market Funnel

The rule of thumb in marketing that it takes a large number of people to be made aware of your project in order to find a purchaser.

Ch. 13: Define Retained Earnings

The sum of all profits and losses, less all dividends paid since the beginning of the business.

Ch. 19: Define Probationary Period

Trial period in which an employee has temporary status before a formal offer to work full time is presented.

Ch. 15: Define Partnership

Two or more people cooperating to conduct a business enterprise.

Ch. 15: Define Bootstrapping

Using funds generated by business operations to capitalize growth.

Ch. 13: Define Owner's Equity

Whatever value is left after all liabilities have been paid.