Ch. 6 Business Entrepreneurship Review

A comprehensive set of flashcards covering key concepts in business and entrepreneurship, suitable for exam preparation.

Angel investors

private investors who fund start-up businesses

Business plan

a written statement of goals and objectives for a business with a strategy to achieve them

Cash flow

the movement of money into and out of a business

Collateral

an asset pledged that will be claimed by a lender if the loan is not repaid

Entrepreneur

a person who starts a new business or purchases an existing business

Equity financing

capital brought into a business in exchange for a percentage of ownership

Job-specific skills

critical skills necessary to perform the required work-related tasks of a position

Mentor

someone with experience who can provide advice, suggestions, and ideas

Market research

the process of gathering and analyzing information about a business

Mission statement

a sentence in a business plan that describes the purpose of the business

Assets

property or items of value owned by a business

Entrepreneurship

process of willingly risking resources to start and run a business in pursuit of profit

Debt financing

borrowing money that must be repaid for use in the business

Capital structure

determines who has control of the business and decision-making power

Market

all the people and organizations that might purchase a product or service

Planning

process of setting goals and deciding how to accomplish them

Start-up capital

money necessary to start and open a business

Pro forma income statement

financial statement that projects revenues and expenses to show whether or not a business is profitable

Pro forma balance sheet

financial statement reports the assets, liabilities, and net worth of a business

Trait

distinguishing characteristic or quality that makes each person unique

Skills of the trade

skills necessary to perform required work-related tasks of a position

Venture capital

money invested in a business by investors forming partnerships or groups to pool investments

Five Ps of entrepreneurship

common qualities of successful entrepreneurs

Pro forma cash flow statement

financial statement reports anticipated flow of income and expenses for a business

Transferrable skills

skills gained through life experiences or jobs that help in a career

What section of a business plan should outline strategies for reaching customers?

marketing and sales strategy

Franchise

a license to sell a company's goods or services within a certain territory or location

Service Corps of Retired Executives (SCORE) is a nonprofit association of more than how many retired and active businesspeople?

13,000

Poor inventory control

a common mistake that can lead to new business failure

What are the five Ps of entrepreneurship?

purpose, passion, persistence, people, and profit.

Pro forma balance sheet

financial statement that reports the assets, liabilities, and net worth of the business

Pro forma financial statements

financial statements based on estimates of future business performance, sales, and expenses

leadership

process of influencing others or making things better

Besides the average number of employees, how is a small business defined?

average annual receipts