Ch 6&7 Entrepreneurship and Starting a Small Business

This set of vocabulary flashcards covers the fundamentals of entrepreneurship, definitions of small businesses, forms of ownership (sole proprietorships, partnerships, and corporations), and methods of financing and planning for a new business based on lecture notes.

Entrepreneurship

Accepting the challenge of starting and running a business.

Self-Employed in Canada

There are approximately $2.9$ million people in Canada who fall into this category.

Entrepreneurial Venture Distinctions

Ventures that differ from small businesses based on amount of wealth creation, speed of wealth creation, risk, and innovation.

Small Business

A business establishment with at least one paid employee, annual sales revenue of $30,000$ (or incorporated), and having filed a federal corporate income tax return at least once in the previous three years.

Micro-enterprises (Micropreneurs)

The smallest of small businesses, most often defined as having fewer than $5$ employees.

Franchiser

The company who sells the franchise to attain rapid growth, share advertising costs, and increase investment money.

Franchisee

The person or company who buys the franchise to access management expertise, training, and well-developed brands.

Sole Proprietorship

One person owning and operating a business without forming a corporation; the business and the owner are considered a single entity.

Unlimited Liability

A disadvantage of sole proprietorships and partnerships where the owners are personally responsible for all debts of the business.

General Partnership

A form of business ownership where all owners share in operating the business and in assuming liability for the business's debts.

Corporation

A legal entity with authority to act and have liability separate from its owners.

Private Corporation

A corporation that is not traded on any stock exchange and is limited to $50$ or fewer stockholders.

Public Corporation

A corporation whose shares are traded on one or more stock exchanges.

Crown Corporation

A corporation that can only be registered by the provincial or federal government.

Professional Corporations

A type of corporation where the owners provide professional services, such as accountants and architects.

Business Plan

A detailed written statement describing the nature of the business, target market, competitive advantages, and the resources and qualifications of the owner(s).

Angel Investors

Private individuals who invest their own money in potentially hot new companies at the pre-start-up and early-stage levels before the company goes public.

Crowdfunding

The raising of funds through the collection of small contributions from the general public using the Internet and social media.

Market

People with unsatisfied wants and needs who have both the resources and the willingness to buy.

Canadian Trade Commissioner Service

A resource that provides information and assistance to Canadian small businesses entering global markets.