Chapter 6 PBMF exam
SCORES
is a nonprofit association of more than 13,000 retired and active businesspeople.
entrepreneurship
is the process of willingly risking resources to start and run a business in pursuit of profit.
business plan
A(n) ___ is a written statement of goals and objectives for a business with a strategy to achieve them.
franchise
A(n) ______ is a license to sell a company's goods or services within a certain territory or location.
market
A(n) _______ is all the people and organization that might purchase a product.
market
All the people and organizations that might purchase a product or service.
collateral
An asset pledged that will be claimed by the lender if the loan is not repaid is called.
transferable foundation
Basic math, read, and writing, problem-solving, and planning skills are examples of _______ skills.
debt-financing
Borrowing money that must be repaid for use in the business.
equity financing
Capital brought into a business in exchange for a percent of ownership in the business is called _____.
pro forma income statement
Financial statement that projects revenues and expenses to show whether or not a business is profitable.
pro forma cash flow statement
Financial statement that reports anticipated flow of income and expenses for a business.
pro forma balance sheet
Financial statement that reports the assets, liabilities, and net worth of a business.
annual receipts
For most industries, a small business is defined either in terms of average number of employees or average
equity financing
Capital brought into the business in exchange for a percent of ownership in the business is
five P's of entrepreneurship
Common qualities of successful entrepreneurs.
trait
Distinguishing characteristic or quality that makes each person unique.
income
A pro forma ________ statement projects revenues and expense to show if a business is profitable.
Mentor
A __________ is someone with experience who can provide advice, suggestions, and ideas.
entrepreneur
A person who starts a new business or purchases an existing business is a(n) ______.
venture capital
Money invested in a business by investors who form partnerships or groups to pool investments.
start-up capital
Money necessary to start and open a business.
Angel Investors
Private investors who fund start-up businesses are called
planning
Process of setting goals and deciding how to accomplish them.
assets
Property of items of value a business owns.
capital structure
Refers to the way a business sis financed.
transferrable skills
Skills gained through life experience or working on a job that help an individual perform in the workplace or gain success in a career.
skills of the trade
Skills necessary to perform the required work-related tasks of a position.
mission statement
The ___ is a sentence in a business plan that describes the purpose of the business.
capital structure
The ______ of a business determines who has control of a business and decision-making power.
marketing and sales strategy
The _________ section of a business plan describes how the business will reach its market.
cash flow
The movement of money into and out of a business is called
leadership
The process of influencing others or making things better is called
assets
The property or items of value owned by a business are
entrepreneurship
Willingly risking resources to start and run a business in pursuit of profit.
collateral
____ is an asset pledged that will be claimed by a lender if the loan is not repaid.
market research
____ is the process of gathering and analyzing of information about a business.
job-specific skills
______ are critical skills necessary to perform the required work-related tasks of a position.
pro forma financial statement
are financial statements based on estimates of future business performance, sales, and expenses.
angel investors
are private investors who fund start-up businesses with the expectation of returns on their investments.
