Quiz entrep 2

Walkaway

Business termination in which the entrepreneur ends the business with its obligations met

Serial Entrepreneur

Person who opens multiple businesses throughout his or her career

Buy-in

Results when someone acquires only part of the ownership of an existing business

Asset

Something the business owns that is expected to have economic value in the future.

buyout

The purchase of substantially all of an existing business.

Workout

a form of business termination in which the firm's legal or financial obligations are not fully met at closing

Bankruptcy

an extreme form of business termination that uses a legal method for closing a business and paying off creditors when debts are substantially greater than assets.

asset valuation methods

are based on the assumption that a business is worth the value of its assets minus the valuw of any liablities

financial ratios

are often used to place a value on businesses because industry ratios are independent of the size of the business

bootstrapping

finding a low-cost or no-cost way to do something

-access to capital -their own skills and abilities -their own knowlege -their network of friends and business associates

four ste of resources of all entrepreneurs

comparable sales

other firms in the same industry are commonly used to estimate the value of a business

lean business

refer to systematically eliminating waste of time, materials,and money throughout a business.

leveraging of contingencies

the practive of and ability sieze upon novel oppurtunities that become apparent during the conduct of business

Revolving credit

A credit agreement that allows the borrower to pay all or part of the balance at any time; as the loan balance is paid off, it becomes available to be borrowed again.

Franchise

A legal agreement that allows a business to be operated using the name and business procedures of another firm.

start up

A new business that is started from scratch.

Pass off

A type of business transfer where the owner gives the business to someone else without a payment

Business Format Franchising

An agreement that franchisees pay to the franchisor both and up-front fee to obtain the franchise rights and a percentage of gross sales.

Conversion Franchising

An agreement that provides an organization through which independent businesses may combine resources

Trade Name Franchising

An agreement that provides only rights to use the franchisor's trade name and trademarks.

product Distribution Franchising

An agreement that provides the franchisee with specific brand names products, which are resold by the franchisee in a specified territory.

transfer

An endgame strategy in which ownership is moved from one person or group to another.

Termination

An endgame strategy in which the owner closes down a business.

Buyouts

Are restricted to businesses that have a formal legal form of organization, including corporations, limited liability companies, and some partnerships.

Franchising

Is a legal agreement that allows one business to be operated using the name and business procedures of the another.

Founders

People who create or start new businesses.

Effectual Reasoning

begins with a consideration of what resources are available and what restraints there are on those resources

discounted cash flows

cash flow that have been reduced in value because they are to be received in the future

bricolage

comes from a french word " to putter around" -is the practice of making something from whatever you have at hand

"minimum viable product

is a concept to lean business practices where you make a minimum product, but on that an be sold.

Employee stock ownership plan (ESOP)

is a formalized legal method to transfer some or all of the ownership of a business to its employees.

Uniform Franchise Offering Circular (UFOC)

is a standard document franchises use to explain their operations, requirements, and costs to potential franchisees

net realizing value

is an estimate of the amount for which an asset would sell, less the cost of selling it

replacement value

is an estimate of what an identical asset would cost to be acquires and readied for service

discounted cash flow analysis

is based on the concepts that the longer you have to wait to receive money,the less valuable it is right now

strategic partnerships

is the formal or informal relationships with customers, vendors or mentors to ensure the success of an entreprenurial venture

affordable loss

is the practice of bringing your product or your service to market with the minimum expenditure of capital, effort, and time

Casual or predictive reasoning

is the process of setting a goal and then determining the strategy and resources required to attain the goal.

Franchise agreement

is the specific contract signed, often incorporating the information included in the UFOC.

caveat emptor

let the buyer beware, buy at your own risk

Entrepreneur.com

the magazine's website, lists the top 500 franchises. The franchises are listed in rank by the number of new locations opened in the last year

book value

the original acquisition cost of the asset, minus all depreciation expense