Unit 2 Entrepreneurship--Planning

Chapters 4,5,6,7,8

Behavioral Segmentation

used to identify purchasing behavioral patterns of customers

Customer Profile

a report portraying details about a typical customer

Demographic segmentation

the division of a market using statistical data

Market Identification

The method of choosing a target market

Geographic Segmentation

Businesses study the unique needs and wants of people in geographic areas to create and market products to meet consumer demands

Market Segmentation 

used to narrow a market into small, specific groups

Market Share

is the percentage of the market for a product or service that a company supplies

Marketing

is the process or technique of promoting, selling, and distributing a product or service

Marketing concept

a method of selling that involves analyzing customer wants and needs and aiming to fulfill them better than competitors

Psychographic Segmentation

the lifestyle analysis of customer values, attitudes, and preferences, assists marketers in predicting psychological influences and purchasing priorities.

SWOT analysis

a business tool that evaluates a company’s strengths, weaknesses, opportunities, and threats

Target Market

is the specific group of people they will sell to

Accounting

the system of recording, summarizing, and analyzing business and financial transactions

Accounts Payable

the balance due to a creditor on a current account

Accounts Receivable

the balance due from a debtor on a current account

Balance sheet

used by all types of businesses to detail assets, liabilities, and owners equity at one specific moment in time

Budget

a detailed estimate of income and expenses for a specific period of time

Cash flow statement 

indicate the flow of cash through a business

Fixed expense

money spent on something that costs the same amount each month

Income statement

a financial tool used to evaluate a businesses financial position

Variable expense

fluctuates form month to month and is dependent on production and sales volume

Angel Investor

an investor who makes a one-time start-up gift

to a business venture, may offer equity financing

Bootstrapping

to launch and maintain a business by exhausting whatever existing resources an entrepreneur has and with minimal cash

Closed end credit 

an agreement or contract that states the repayment terms, such as the number of payments, the interest rate, and the monthly payment

Credit report

Records of financial and credit history 

Credit score

A numerical summary of the information contained on a persons credit report

Crowdfunding

The collection of small investments from a large number of individuals to finance their business 

Crowdsourcing 

Uses social media to accomplish entrepreneurial efforts

Debt financing

When an entrepreneur takes out loans to finance business ventures

Equity financing

Occurs when money is given to a venture through the purchase of stock of a business

Open end credit 

Also referred to as revolving credit involves loans me on a continuous basis as purchases are made

Venture capital

The money investors use to fund start ups and forge partnerships with owners

Business-to-Business

When a business sells products to other businesses

Business-to-Consumer

Businesses that sell directly to consumers

Cooperative

To provide the service and products that benefit the members

Corporation

A business owned by stockholders who share in profits and losses

Limited Liability Company

A type of ownership that joins elements of a corporation and a partnership

Partnership

A form of business owned by to or more individuals who share management and profits

Regulation

Include minimum wage limits, license and permit costs, healthcare requirements for employers, and even trade agreements

S-Corporation

A corporation that requires its owners to file their profits and losses on their personal tax returns

Sole proprietorship

A business owned and operated by a single individual

Economic Resource

The goods and services businesses use to meet consumer wants and needs

Economic Utility

the satisfaction or benefit a consumer receives from consuming a good or service

Exchange rate

The amount one currency is worth in another form of currency

Export

Goods that are produced and shipped from one country into another country

Globalization

The process by high businesses or other organizations develop international influence or start operating on an international scale

Import

Goods and services made in a foreign country and shipped into another country

Inflation

A general increase in prices and fall in the purchasing value of money

Interest Rate

A percentage of a loan that is charged to the borrower incrementally

Law of Diminishing Returns

States that at any given stage of technological advance an increase in production factors, such as labor or capital, applied beyond a certain point fails to bring about a proportional increase in productions

Macroeconomics

The study of large-scale economic factors that indicate the conditions of the economy

Monopolistic Competition

When many businesses in a market are selling products that are slightly different from one another

Monopoly

A market structure where a single business has exclusive control of a market

Oligopoly

A market structure where a small number of businesses have control of a market

Opportunity Cost

An economic concept that represents the benefits that would have been received by choosing the alternative

Perfect Competition

A theoretical market structure where many businesses sell identical products

Pop-Up shop

Retail stores for a limited amount of time in a limited space with no overhead above and beyond the space rental

Scarcity

The problem of trying to meet infinite wants with limited recourses

Unemployment Rate

A number of workers are without jobs or the percentage of people without jobs and wages rises