Entrepreneurship

Communism

¡Central government determines supply and demand

Socialism

¡Government owns & runs vital industries

Capitalism

¡Individuals own & operate most businesses

¡Pure competition

Multiple businesses competing in many areas

¡Monopolistic competition

Fewer business; few real differences

¡Oligopoly

One or two large, a few small

¡Monopoly

Only one business offers product

Entrepreneurship

the creation of new value by an existing organization or new venture that involves the assumption of risk

žOpportunity recognition

›the process of discovering and evaluating changes in the business environment, such as a new technology, socio-cultural trends, or shifts in consumer demand, that can be exploited

Sole Proprietorship

¡Owned and operated by one individual

General Partnership

¡Two or more people who co-own a business, Unlimited liability

Limited Partnership

¡Two or more people who co-own a business, risk limited to initial investment

Corporations

¡Legal entity whose assets & liabilities are separate from owners

¡Common stock

Voting owners; 1 voter per share, Dividends paid after preferred stock dividends

¡Preferred stock

No say in running the company, Dividends fixed % of issue price; paid first

¡Private corporation:

no stock sold to public

¡Public corporation:

Anyone can buy or sell stock

S-Corporation

¡Limited liability like corporation, Taxation like partnership

LLC

¡Limited liability like corporation, Taxation like partnership Simpler & more flexible to run than corporations

Cooperative

Organization consisting of individuals or small businesses banding together

Nonprofit

¡Known as 501(c)(3), Not subject to federal income tax

Vision Statement

future tense, goals

mission statement

present tense, purpose

Planning

The process of determining the organization’s objectives & deciding how to accomplish them

Organizing

Structuring of resources & activities to accomplish objectives efficiently & effectively

Staffing

—Hiring people to do the work of the organization

Directing

—Motivating and leading employees to achieve organizational objectives

Controlling

—Evaluating & correcting activities to keep organization on course

Financial Managers

Obtain needed funds for successful operation of an organization & use those funds toward organizational goals

Production & Operations Managers

Develop & administer activities to transform resources into goods, services & ideas ready for the marketplace

Human Resources Managers

Handle staffing function, training, policies, & compensation

Marketing Managers

—Responsible for planning, pricing, & promoting products

Information Technology Managers

—Responsible for implementing, maintaining, and controlling technology applications in business, such as computer networks

Administrative Managers

—Manage an entire business or a major segment of a business

Organizational Structure

—The arrangement or relationship of positions within an organization

Primary Data

•Marketing information observed, recorded, or collected directly from respondents

Secondary Data

•Information compiled by someone outside the organization, e.g. articles about studies someone else did

Target Market

•A specific group of consumers upon whose needs and wants a company focuses its marketing efforts

Market Segmentation

•A strategy whereby a firm divides the total market into groups of people who have relatively similar product needs

Marketing Mix

Product, Price, Place, Promotion

Product Line

•A group of closely related products treated as a unit because of similar marketing strategy, production or end-use considerations

•Product Mix:

All the products offered by an organization

Finance

management & interpretation of information, primarily of money