Comprehensive Business, Marketing, and Entrepreneurship Study Guide

Skill

Having a skill means that you have the ability to do something specific, it is easier to learn a skill than it is to develop a characteristic

Idea-driven enterprise

An idea-driven enterprise is one that you create as a result of an invention or innovation

Market-driven enterprise

A market-driven enterprise develops in a different way, these entrepreneurs look for a customer base and then develop a product those customers indicate they need and want

Feasible venture

A feasible venture is one that has the potential to succeed

Market segment

A market segment is any part of an overall market that has common characteristics, market segments can be large or small

Product mapping

Product mapping allows an entrepreneur to visualize all the products or services that are available in a particular segment and to group them by a specific feature

Invention

An invention is a product or process that does something that has never been done before

Patent

A patent is a grant made by the government that gives the holder the sale right to make, use, or sell an invention for a set period of time, preventing others from using it without permission

Copyright

A copyright gives someone the exclusive right to publish, produce, sell, or distribute works of literature, music, art, and software

Tredemarks

Trademarks are words, symbols, or designs used to identify a product or service and distinguish it from it’s competitors

Licensing

Licensing is an invention means that the inventor allows another business to use his or her invention for a fee

Royalty

The fee or royalty can be either a fixed amount or a percentage of the total sales revenue that the user pays the patent or copyright owner

Franchise agreement

A franchise agreement is an arrangement for one business to license the right to its name and procedures to another business or person

Innovation

Innovation means using new technology, materials or processes to improve existing products or how they are produces or distributed

Budget

A budget is a plan for wise spending and saving based on your income and your expenses

Fixed expenses

Fixed expenses occur regularly and cannot be adjusted, such as mortgage or rent, insurance payments and car payments

Variable expenses

Variable expenses differ from one month to another, these include food, clothing, utilities, and entertainment, savings is also included

Legal tender

Legal tender is coins and paper money, as defined by the government of Canada and must be accepted as payment for goods and services

Income

Income is money that an individual or business receives from various sources, such as wages, sales, interest, or dividens

Characteristics of an entrepreneur

Risk taker, perceptive, curious, imaginative, goal setters, hard workers, self-confident, flexible, indapendent, persistant

Three main skills of an entrepreneur

Research skills, management skills, relationship skills,

The four management skills entrepreneurs possess

Planning, Organizing, direction, controlling

Three main types of relationships entrepreneurs establish

Supplier relationship, Staff relationship, customer relationship

Categories new ventures are categorized into

Manufacturing, Importing or wholesaling, retail sales, service

The three criteria for evaluating new ventures

Feasibility, Marketability, Profitability

The three basic categories of trademarks

Ordinary marks, certification marks, distinguishing guises

Two features good ideas that turn into ventures have in common

They are innovative, and they suggest a way to satisfy a need

The six ways a business can innovate in order to gain a competitive advantage over another business

Changing how a product is used, changing the package, changing the marketing strategy, changing the distribution process, Changing the design, changing the manufacturing process

Three types of personal income

Gross income, Disposable income, Discretionary income

Three major forms of business income

Revenue, Gross income, Net income

Two types of budgets in business

Start up budget, Operating budget

Profit

Profit is the income that is left after all the costs and expenses are paid

Producers

Producers are the businesses that make goods or provide services

Consumers

Consumers are the people that buy the goods or use the services

Assets

Assets are items that a business owns such as buildings, land, equipment, cash, and receivables

Liabilities

Liabilities are debts that the business owns

The three economic resources

Natural, human, capital

Six international business structures

Joint venture, International franchise, strategic alliance, mergers, offshoring, multinational corporation

Logos

A logo is a special symbol that is associated with a product or company, the logo or trademark helps the product compete for consumer awareness

Slogan

A slogan is a short, catchy phrase that is usually attached to the company’s name and logo

Brand awareness

Good marketing develops brand awareness-customers can name your brand as part of a specific category

Brand loyalty

Better marketing develops brand loyalty-customers prefer your brand and support it

Brand insistance

The best marketing develops brand insistance-the Customer will accept no substitutes

Fad

A fad is a product that is extremely popular for a very short period of time

Advertising

Advertising is the paid for promotion of a business’s goods and services over a variety of mass media to a target market of comsumers

Publicity

Publicity is media information about a business that the business doesn’t pay for, as a result, it is more believable than advertising

The product lifecycle

Product introduction, growth, maturity, decline, decision point

The four P’s of marketing

Product, Price, Place, Promotion

The two C’s of marketing

Competition and consumers

Advertising techniques

Repitition, Conformity, Imitation, Emotional appeal, Good Will, Scare Tactics, Snob appeal, Economic appeal, Comfort and enjoyment

Leadership styles

Autocratic leadership, Laissez-faire leadership, Democratic leadership