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