intro to entrepreneur notes for exam

5 functional areas of business

Management, Operations, Marketing, Accounting, and Finance

Definition of entrepreneurship

Chooses to take the risk to act on the opportunity by starting a business

4 external forces that impact business

Economy, consumer trends, government, and corporate citizenship

Migraine problem

a problem people will spend money on the solve

Macroeconomics

Study the economy as a whole

Microeconomics

Study economic choices of individual consumer and businesses

Management

Planning, organizing, and leading business resources and people

Operations

Overseeing day to day production and delivery

marketing

Makes people get your product based off their needs

Accounty

Records, organizes, and reports company financial transactions, prepare financial statements, ensuring compliance

Finance

Manages financial resources, budgeting financial planning, and analyzes investment opportunities

Economics

How individuals and society make decisions about scare resources

when quantity demand goes up price goes..

UP

When quantity demand goes down price goes

DOWN

what type of business produces More PATENTS

Small business

What type of business produces Less PATENTS

Larger companies

Most important part about creating a business

A business plan used for attracting investors and lenders

Beginning of business plan

Provides a concise overview to capture the readers interest

You should run a franchise

Makes you find certain rules you will have to adhere with

Being a small business owner is

common and riskiest option when starting from scratch

How do you become a small business owner?

Buy an existing business profit and purchase franchise

what does finance focus on?

Managing and planning how money is used

What does accounting focus on?

Records financial data

Definition of a Sole Proprietorship

A business owned by 1 person

How does a business dissolve

when the owner of the business passes away

2 Advantages of being a Sole Proprietorship

1.) Owner gets all the income earned

2.) Owner has complete control of the company

2 Disadvantages of being a Sole Proprietorship

1.) Owner is liable for all company debts

2.) Owner must supply all talent needed

definition of Partnership

A business owned by 2 or more people

2 Advantages of Partnership

1.) Pays no income taxes

2.) Easy and inexpensive to set up

Disadvantages of Partnership

1.) Profits are shared among the partners

2.) More complex to set up than Sole Proprietorship

Definition of Corporation

Legal entity that is separate from parties who own it and that is responsible for its own debts

2 Advantages of Corporations

1.) Financial resources

2.) Attracts skilled workers

2 Disadvantages of Corporation

1.) Costly to set up

2.) Heavy regulation and government oversight

Corporations are owned by..?

Shareholders

What is a Mission statement

A concise explanation of an organization

definition of Value Proposition

A statement that identifies the benefits of a company’s products

Definition of a Mentor

Mentors Guide, Advise, and support someone who is less experienced

What are the 4 types of teams?

1.) Management

2.) Self-Managing

3.) Cross functional

4.) Virtual

what is Management led?

1.)Sets goals

2.) assigns tasks

3.) monitors team performance

What is Self Managing

Employees control the activities needed to meet the overall goal

Cross functional

Team members from various functional areas

Virtual

Geographically dispersed members interact electronically

3 Skills needed to succeed

1.) Technical

2.) Decision making

3.) Interpersonal

Characteristics of a successful team

Having Clear Goals

Definition of communication

Process of transferring information from a sender to a receiver

What is not a factor of team effectivness

Members knowing one another for a long period of time

Definition of GroupThink

Groupthink results in tendency for a team member to conform to group pressure and group harmony

Key term Listening

Active listening builds trust, reduces misunderstandings, and helps the team make better and informed decisions