Management Test 2 (CHAPTERS 5,6,7,8)

Venue

A place where something takes place.

Franchise

A prepackaged business bought, rented, or leased from a company called for a franchisor.

Consumer

A private individual or household that is the end user of the product or service.

Conflict on Interest

A situation in which a person in a position of responsibility or trust has competing professional or personal interests that make it difficult to fulfill his or her duties impartially.

Pop-Up Business

A temporary business that offers services or products in a variety of locations for a brief period at a time. What characterizes a pop-up business from any other is its temporary nature.

Core Comptency

The main work of a firm in a particular line of business.

Affordable Loss

The minimum possible expenditure of capital and other resources in order to bring an entrepreneurial idea to market.

Competitive Advantage

The particular way a firm implements customer benefits that keeps the firm ahead of other firms in the industry.

Leveraging Contingencies

The practice of and ability to seize upon novel opportunities that become apparent during the conduct of business.

Due Diligence

The process of investigating a business to determine its value and potential for investment.

Casual (Predictive) Reasoning

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

Variance

Permission from a government organization to act differently that the laws state.

Spin-Off

a business that is created by separating part of an operating business into a separate entity

Sponsored Link

a form of paid advertising that gets your company's website at the top of a search list

Search Engine Optimization

a general approach to website design intended to result in the site being displayed toward the beginning of a search engine's listing for that term

Blue Ocean Strategy

a strategy based on creating a new product or service which has no competitors

Business-to-business (B2B)

applies to businesses buying from and selling to each other over the internet

Pensioning the well

creating a negative impression among your employers' customers

Door to Door Selling

door-to-door selling is the practice of taking products directly to the homes or place of business of potential customers and attempting to sell the product immediately.

Zoning Laws

government specifications for acceptable use of land and buildings in particular areas

Reciprocal Link

A listed, live connection to a different website, which in turn displays a similar link to the first website.

Episodic Business

A temporary, project-based, or sporadically operating business.

Pass Off

A type of business transfer where the owner gives the business to someone else without a payment. This is most often done to maintain employment for the staff and service for the customers, but the business is not profitable enough to give the original owner any revenue.

Permanance

the impression of long-term continuity a business is given to others

Point of Indifference

the price at which a buyer is indifferent about buying or not buying the business

Hybrid Entrepreneurship

the process of initiating a business while simultaneously remaining employed for wages or salary

Licensing

Documented permission from the government to run your business.

serial entrepreneur

a person who opens multiple businesses throughout his or her career

Business Format Franchising

an agreement that provides a complete business format, including trade name, operational procedures, marketing, and products or services to sell

Conversion Franchising

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

Trade Name Franchising

an agreement that provides to the franchisee only the rights to use the franchisor's trade name and/or trademarks

Network Marketing

an approach to selling in which the salesperson recruits customers to become distributors of the product or service to others

Parallel Competition

an imitative business that competes locally with others in the same industry

Competitor

any other business in the same industry as yours

Cannibalizing

taking business away from your employer

Bricolage

A word derived from the French verb bricoler. In entrepreneurial usage bricolage refers to the process of analyzing the resources available and creating a product or service from them.

Aggrandizing

attempting to make your business or yourself seem more accomplished or grander than reality

Pure Innovation

the process of creating new products or services, which results in a previously unseen product or service

Blog

A webpage in which entries are posted in reverse chronological order.

Intellectual Property

Property coming from some sort of original thought; for example, patents, trade secrets, trademarks and copyrights.

Earnings Multiple

The ratio of the value of the firm to its annual earnings.

Incubator

a facility which offers subsidized space and business advice to companies in their earliest stages of operation

Imitative Strategy

an overall strategic approach in which the entrepreneur does more or less what others are already doing

Buyout

the purchase of substantially all of an existing business

Bootstrapping

using low-cost or free techniques to minimize your cost of doing business

Moonlighting

working on your own part time after your regular job

Walkway

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

Registration

Information provided to the government concerning the existence of name of, nature of, and contact information for your business.

Incremental Innovation

an overall strategic approach in which a firm patterns itself on other firms, with the exception of one or two key areas

Cost to Start-Up

the amount of money it takes to start a new business

Degree of similarity

the extent to which a product or service is like another

Volatility

the frequency of business starts and stops

Buy-In

the purchase of substantially less than 100 percent of a business

Heuristic

a commonsense rule (or set of rules) intended to increase the probability of solving some problem

Part-Time Business

A business in which the owner either participates fewer than 35 hours per week or operates on a temporary or seasonal basis while maintaining employment elsewhere for wages or salary.

Home Party

A business model in which the entrepreneur arranges a customer to host a party, inviting friends, family and neighbors. During the party, the entrepreneur demonstrates products and accepts orders for future delivery.

Scope

A characteristic of a market that defines the geographic range covered by the market- from local to global.

Scale

A characteristic of a market that describes the size of market- mass market or niche market.

Minimum Viable Product

A concept central to lean business practices where you make a minimum product, but one that can be sold. By selling to customers and collecting feedback, an entrepreneur can develop a product at minimum cost.

Workout

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

Employee Stock Ownership Plan (ESOP)

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

Lean Business Practices

An application created by Eric Ries that addresses the specifics of new business creation, particularly Internet-based businesses, where rapid experimentation and constant monitoring of viewer's choices are possible.

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.

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.

Goal

An intended outcome for your business

RSS Feed

An internet messaging service that pushes (sends) whatever web material you specify to subscribers to that feed

Informational Website

An internet site designed to introduce and explain a business to others.

Outsourcing

Contracting with people or companies outside your business to do work for your business.

Time to Start-Up

how long it takes to start a new business

Mass Market

a customer group that involves large portions of the population

Business-to-consumer (B2C)

E-commerce transactions between businesses and consumers.

Marketing

The actions of a business related to promoting and selling products or services.

Net Realizable Value

The amount an asset will sell for less the cost of selling

Full-Time Employment

Working 35 hours or more per week

Innovative Strategy

An overall strategic approach in which a firm seeks to do something that is very different from what others in the industry are doing

Strategic Partnerships

Formal or informal relationships with customers, vendors, or mentors to ensure the success of an entrepreneurial venture.

Value Proposition

Small business owners' unique selling points that will be used to differentiate their products and/or services from those of the competition.

Market

The business term for the population of customers for your product or service.

Replacement Value

The cost to acquire essentially identical asset.

Industry

The general name for the line of product or service being sold, or the firms in the line of business.

E-Commerce

The general term for conducting business on the internet.

Covenant

The limitations imposed on an individual's property by the neighborhood groups.

Part-Time Employment

Working 35 or fewer hours per week

Takeover

seizing of control of a business by purchasing its stock to be able to select the board of directors

Distinctive Competence Map

A graphic display that compares your company's products or service to that of your competitors in order to identify your core competencies and those unique to you and your competitor.

Effectual Reasoning

A logical process in which one analyzes the resources available and restraints on the use of resources to create an attainable goal.

Sell Off

A type of business transfer where the seller gets only fraction of the value of business. This is most often done to maintain employment for the staff and service for customers, but the business can generate only a small amount of profit with which the original owner can be paid, or the new owner does not have much money to buy the business.

Distinctive Competence

Those features, benefits, or aspects of your business that are unique to your firm, or more strongly identified with your firm than with your competitors. This is the specialty for which your firm is best known.

Tweet

a 140-character or less message sent using the Twitter web service

Reverse Auction

an auction in which the low bid gets the business or wins

Intangibles

assets, such as patents or trademarks, and liabilities, such as accounts payable, that have no physical existence

Discounted cash flows

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

Delegation

the assignment of work to others over whom you have power.

Book Value

the difference between the cost of a depreciable asset and its related accumulated depreciation

Multichannel Marketing

the use of several different channels to reach your customers, for example, a website, direct mail, and traditional retailing

Reverse Price

A minimum acceptable selling price in an auction. If the bidding does not exceed the price, the sale will not go through.

Maker

A modern term for an inventor, in particular, an inventor who uses modern techniques like 3-D software and 3-D printers or do it yourself electronics to create new items.

Niche Market

A narrowly defined segment of the population that is likely to share interests or concerns.

Start-Up

A new business that is started from scratch.