ESB Domain 1 Review*

Patent

A legal method used to protect an invention for a limited time.

MVP

A minimum viable product (MVP) is an inexpensive preliminary product to test the product idea.

Compensation

A monetary amount given to employees in return for their work

Innovation

A new idea, product, or method.

Lean Canvas

A one-page document discussing key information commonly seen in a business plan.

Investor

A person or entity willing to provide monetary funds to a business with the hopes of earning a return on their money

Sales Pitch

A persuasive speech prepared to entice a potential customer to purchase a service or good.

Trade Secret

A practice used by businesses to protect a practice, process, or formula from being shared with other competitors.

Trademark

A practice used to protect brand names, logos, and business names.

Prototype

A preliminary product, commonly a product with minimum viability, from which to test and develop

Pitch Deck

A presentation given to potential investors to provide a brief overview of the business plan to earn another meeting.

Product

A tangible item

Non Profit

A type of business that has no owner and does not pay federal US taxes.

Contract

An agreement between an employee and a company outlining obligations and terms of employment.

Customer

An individual or business that purchases goods and services from a business.

Stakeholder

An individual with an interest in a business

Stockholder

An owner of one or more shares of a corporation

Define Stage

Analyze observations and information gathered during the empathize stage during this stage of the design thinking process.

Growth Mindset

Believing that one can accomplish anything with hard work.

COO

Chief Operating Officer is responsible for seeing the day to day administrative and operational functions.

Inventory

Goods a business owns with the purpose of selling.

Equity

Non-cash compensations offered to employees in place of or in addition to a lower salary

Empathize Stage

Observe, engage, and empathize with customers to understand their experiences and needs in this stage of the design thinking process.

Ethical Practices

Standards of professional conduct professionals should uphold.

CEO

The Chief Executive Officer (CEO) holds a leadership role within a business. The CEO oversees a business's operations and resources and makes the major decisions for the company.

Price

The amount of money charged for goods or services.

Grit

The characteristic of being able to tackle goals with courage and perseverance.

CFO

The chief financial officer is responsible for a business's finances.

Ideate Stage

The design team develops solution ideas to spark new ways of thinking during this stage of the design thinking process.

Owner

The individuals that own the business.

Risk Tolerance

The level of willingness to lose time and money when starting a business.

Risk

The possibility of something negative happening. In the context of a small business, the possibility of a loss of time and money.

Opportunity Recognition

The way one approaches new ideas and ventures in their life.

Sole Proprietorship

a business owned and managed by a single individual. There is unlimited liability.

Business Plan

a document that addresses the concept, customers and capitol for a business

Business Opportunity

a situation an entrepreneur analyzes and evaluates to see if starting a sustainable, profitable business is feasible.

Asset

a tangible item a business owns

S Corporation

a type of business that offers limited liability like a corporation and single taxation like a partnership, but no foreign investors are allowed

Piece work

a worker paid a fixed rate for each unit produced

Employee

an individual hired by a company and compensated for their work

Entrepreneur

an individual who aspires to start and run a successful business

Service

an intangivle service or skill that is performed

LLC

limited liability company is ideal for a single owner seeking low risk.

Partners

members of a company who share the risks and profits of the business

Hourly Pay

payment for services rendered based on the number of hours worked

Liability

the amount of money owed to an entity

Founder

the person that developed or created a company or organization

B2C

the process in which businesses sell to consumers

Forward Thinking Mentality

thinking about and planning for the future

B2B

A business to business commercial transaction between businesses

C Corporation

A business structure that allows the company to pass its income, losses deductions and credits through its shareholders to decrease their taxation. Ideal for international businesses. There is double taxation.

Franchise

A business that takes its name and characteristics from an existing business chain

Small Business

A corporation, partnership, or sole proprietorship that is privately owned by one indivudal or a small group of people.

Intellectual Property

A creative work or invention to which an individual has been given rights.

Commission

A fee paid to an employee for completing a task

Salary

A fixed amount of money paid to an employee for each pay period.

Copyright

A form of protection individuals can implement to protect their intellectual property. Copyright is designated for print, music, film, and various other forms of creative licenses.