Forming a Business
Technical Skills
Ability to perform tasks in a specific discipline or department
Entrepreneurship
Accepting the risk of starting and running a business.
Franchise
Agreement where a business idea seller grants rights to use the name and sell products.
Licensing
Allowing a foreign company to produce a product for a fee
Planning
Anticipating trends and determining strategies to achieve goals
SWOT Analysis
Assessment of internal strengths/weaknesses and external opportunities/threats
Limited Liability Company (LLC)
Business entity with flexible operations and limited liability for owners.
Cooperatives
Business owned and controlled by users for mutual gain.
Sole Proprietorship
Business owned and managed by one person with unlimited liability.
Incubators
Centers offering new businesses low-cost offices and basic services.
Decision Making
Choosing among alternatives to make managerial decisions
Market
Consists of consumers with unsatisfied needs and resources willing to buy.
Intrapreneurs
Creative individuals working as entrepreneurs within corporations.
External Customers
Dealers and end users who buy products for personal use
Organizing
Designing the structure and systems for goal achievement
Business Plan
Detailed written statement describing the business nature, market, and advantages.
Strategic Planning
Determining major goals and strategies for goal achievement
Micropreneurs
Entrepreneurs managing small businesses for a balanced lifestyle.
Vision
Explanation of why the organization exists and its direction
Knowledge Management
Finding and sharing the right information within the organization
Home-Based Franchises
Franchises operated from home with low overhead expenses.
Staffing
Function involving hiring, recruiting, motivating, and retaining employees
Empowerment
Giving employees responsibility, freedom, training, and resources
Directing
Giving explicit instructions, explaining routines, and clarifying policies
Top Management
Highest level of management responsible for strategic plans
Organizational Resources
Includes workers, financial resources, information, and equipment
Small Business
Independently owned, meeting size standards, with personal customer service.
Angel Investor
Individual providing financial backing for startups in exchange for ownership equity.
Venture Capitalists
Individuals or companies investing in new businesses for partial ownership.
Partnership
Legal business form with two or more owners sharing operations and debts.
Corporation
Legal entity with separate liability from owners, common in the US.
Goals
Long-term accomplishments an organization wishes to attain
Autocratic Leadership
Making managerial decisions without consulting others
Free Trade
Movement of goods and services among nations without barriers
Acquisition
One company purchasing the property and obligations of another.
Mission Statement
Outline of an organization's fundamental purposes
Joint Venture
Partnership of companies from different countries for a major project
General Partnership
Partnership where all owners share in business operations and liability.
Management
Practice of getting things done through organizational resources
Crowdfunding
Raising funds for a project or venture by obtaining small amounts from many people.
Merger
Result of two firms forming one company, akin to a marriage.
Objectives
Specific, short-term statements detailing goal achievement
Balance of Trade
Total value of a nation's exports compared to imports
Process
Used to accomplish organizational goals