Entrepreneurship Unit 1 Test

Entrepreneur

Entrepreneur

- someone who starts a venture to solve a problem

- takes advantage of a market needs

Traits of an Entrepreneur

- Hard-worker

- Self-owned

- Risk-taker

- Must have a business plan

- Have an innovative idea

- Have self-confidence

- Have amazing pitching skills

- Networking

- Perceptive

- Adaptive

Intrapreneur

- Someone who works for a company and has an idea for it that will benefit the company

- Risk taken by the company

- Steve Jobs coming up with the idea of the Apple Macintosh

NDA

- Non-Disclosure Agreement

- sometimes referred to as the confidentiality agreement

- written contract between two parties that prevents sharing of confidential info

Different Types of Financing

Personal Savings

Friends and Family

Bank and Credit Unions

Angel Investors and Venture Capital Firms

Corporate Programs

Economic Development Programs

Grants

Crowdfunding

Home Equity Loans

Credit Cards

Personal Savings

- money that you have saved up to start a business

Friends and Family

- Love money from friends and family

Banks and Credit Unions

- a form of Debt Financing

- Ensure a bank has worked with your industry before

- ensure it also has had a history of giving loans to small businesses

- Find Financial institutions that offer Small Business Administration loans

Angel Investors and Venture Capital Firms

Angel Investors - invest their own personal money

Venture Capitalists - Capital from VC firms to invest into company

Corporate Programs

- Some Corps. have provided low-interest loans to smaller businesses, typically those in disadvantage areas

Economic Development Programs

- loans that require you to meet certain certifications

- being a woman or being a minority might qualify you for a special loan

Grants

- Government departments and agencies provide financing such as grants, subsidies, and loan guarantees

Unforgivable Grant

- Must pay back loan amount

Forgivable Grant

- Does not need to pay back loan amount

Crowdfunding

raising money for a project or venture by obtaining many small amounts of money from many people

Home Equity Loans

Equity in a home acting as collateral for your loan

Credit Cards

Plastic cards used to make purchases on credit.

Disposable Income

- income after taxes have been paid off

Discretionary Income

- income after taxes and necessities have been paid off (ex: rent, utilities, etc.)

What is a Monopoly?

- single company owns the market

- can set whatever prices they want because they no competition

What is an oligopoly?

- small group of companies that control the Market

ex: Rogers, Bell, and Telus dominate the Telecommunications Market

Direct Competition

- Competition between products and services that are very similar

- Amazon and Alibaba

Indirect Competition

- Competition between products that are not very similar

Intellectual Property

Copyrights

Patents

Trademarks

Licensing Rights

Royalties

Copyrights

- gives someone or company the exclusive right to publish, produce, sell or distribute works

- Copyright generally lasts for life of the author + 50 years

Trademarks

- a word, symbol, or name that legally identifies your business

"R" means that the trademark is legally backed

- it means it is registered with an IP Office

Patents

- government grant that gives a person the right to make, use, or sell an invention

- Canadian Patents your invention only in Canada usually for 20 years

- to protect your invention globally, you must apply for patents worldwide

4 Legal Requirements to Get a Patent

- Is your Invention Useful?

- Is your invention a machine, process, composition of matter, etc?

- Is your Invention new?

- Is your invention obvious?

Licensing Agreement

- inventor allows other parties to use his or her invention for a fee

- legal contract between two parties (Licensor and Licensee)

Royalties

- for licensing agreements, the fee can be a fixed amount of a percentage of the total sales revenue that the user pays the patent or copyright owner

Franchising Agreements

- the franchisor could give the right to franchisees the right to sell and distribute products in a certain area

Invention

- a product that has never been designed before to solve a problem

Idea-Driven Enterprises

a venture that begins as the result of an invention

ex: Uber Eats

Innovation

An improvement of an existing technological product, system, or method of doing something

Market-Driven Enterprises

- venture that begins with an idea about the market rather than about a product

Profit Equation

Revenue - Expenses

Interdependence

- society relies on goods and services provided by multiple communities and businesses

Different Side Hustles

- Fiverr for side gigs

- Affiliate marketing

- Selling on Amazon

- Teach English Online

- Being a tutor

- Sell stock photos

Obsolescence

- Businesses are always looking for new ways to produce new and better products

- They provide better services to consumers

Franchisor

A company that develops a product concept and sells others the rights to make and sell the products.

Franchisee

an individual or business that is granted the right to sell another party's product

- usually gets training and instructions in how to run the business

ex: McDonalds

Sole Proprietorship

Business owned by one single person

- easy to start

- not a legal entity

Partnerships

Business owned by two or more owners

- there is a partnership agreement

- In a General partnership, partners are liable for each other's misconduct

- in a LLP, partners are protected by Limited Liability

Cooperatives

- business owned by the people or workers who buy the products and services it may offer

- structured to adapt to members' changing needs

Corporation

Private Corps - only a few people control all the shares of the business

Public Corps - raises money by selling shares to people

Canadian Inventions

Arnold Bombardier - The Snowmobile

Dr. Wilbur Franks - Antigravity Suit

Jacques Plante - The Goalie Mask

Assets

- something a company owes that can rise or decrease in value

Liabilities

- any debts or obligations a company owes to creditors

Revenue

- Money coming in from the sales of goods and services

- not NET INCOME

Net Income/Net Profit

Revenue - Taxes and other expenses

Fiat Currency

Legal tender, especially paper currency, authorized by a government but not based on a gold standard or silver standard

Hot Wallet

- a crypto wallet that is connected to the internet

- these wallets are easier to set up, access, and accept tokens

- more susceptible to hackers, possible regulation and other technical vulnerabilities

ex: MetaMask

Cold Storage

- crypto wallet not connected to the internet

- more secure, but do not accept as many cryptocurrencies

- Cold storage device (ex: Trezor, Ledger, etc.)

Public Key

An asymmetric encryption key that does not have to be protected.

Private Key

In an asymmetric encryption scheme the decryption key is kept private and never shared, so only the intended recipient has the ability to decrypt a message that has been encrypted with a public key.

Where are Canadian Coins Minted

- at the Royal Canadian Mint

What is Cryptocurrency

a digital or virtual currency that uses cryptography for security

Different Types of Payment Systems

- Credit Cards

- Cash/Legal Tender

- Apple Pay

- Google Pay

NFTs

Non-Fungible Tokens

- unique items with blockchain-managed ownership

- ex: Collectibles, game items, etc.

KYC

Know Your Customer

- verifying the identity of the client to prevent fraud

What is the Blockchain

- digital records of transactions

- comes from the structure - blocks are linked together in a single list called a chain

- used for recording transactions with Cryptocurrencies and to also prevent fraud as well

Who is Satoshi Nakamoto

- could be a person or multiple people have developed Bitcoin

What is Bitcoin Pizza Day?

- First ever bitcoin transaction

- 10,000 bitcoins were used to pay for pizzas on May 22nd, 2010

Active Income

- Income generated from active activities

- ex: working a 9-5

Passive Income

- income generated with little to no effort required

- ex: stock dividends, rental income, etc.

What is the Cashflow Quadrant?

- four types of way that people make income

- Employee, Business-Owner, Self-Employed, Investor

What is the Retail Apocalypse?

- closing of numerous North American brick-and-mortar retail stores, especially those of large chains

- Starting around 2010 and continuing onward

- Many physical stores have closed due to several factors

- Including over-expansion of malls, rising rents, bankruptcies of leveraged buyouts, low quarterly profits outside holiday binge spending, and changes in spending habits

Retro

- Shoes that went out of style and now are reintroduced

Collab

- using big influencers and celebrities for publication

- Air Jordans, the renowned Basketball player, to publicize the shoes

Deadstock

refers to a pair of sneakers that is brand new and has never been worn, used, or even tried on. These sneakers are in their original, pristine condition

Colorway

A "colorway" refers to the specific color scheme or combination used on a particular sneaker model.

Collab

"Collab" is short for "collaboration." In the sneaker world, it refers to a partnership between a sneaker brand or manufacturer and a celebrity, designer, artist, or another brand to create a unique and limited-edition sneaker.

Sneakerhead Addiction

Sneakerhead addiction refers to the intense passion and obsession that individuals have for collecting, buying, and staying up-to-date with the latest sneakers.