Entrepreneurship Quiz #1

These flashcards cover the key concepts, business plan components, and definitions found in the Management and Entrepreneurship Module 1 transcript.

Business Plan

A written document that describes in detail how a business defines its objectives and how it is to go about achieving its goals, serving as a roadmap from marketing, financial, and operational standpoints.

Business Concept

The essence of the enterprise which must be translated into a business model.

Business Model

The formula on how the enterprise plans to make money.

Customer Value Proposition

An element of a business model that identifies the target customer and the job to be done to solve an important problem or fulfill an important need.

Profit Formula

The part of a business model that defines the revenue model, cost structure, margin model, and resource velocity.

Revenue Model

A component of the profit formula that determines how much money can be made.

Key Resources

Major assets needed for a business model including people, technology, equipment, information, channels, partnerships, and brand.

Mission

A statement defining what the enterprise wants to achieve.

Vision

A statement defining what the entrepreneur perceives the business to be.

Objectives

The translation of the vision and mission into specific end results.

Executive Summary

A synthesis of the entire plan written last that summarizes every section and justifies why the audience should participate in the venture.

Business Proponents

The individuals who put forward the proposal for the business, including resource mobilizers, technology providers, and management.

Target Market

A group of potential consumers of sufficient size, paying capacity, and interest to whom a company wants to sell its products and services.

Main Value Proposition

A unique selling proposition statement that convinces customers why a product or service is more valuable to them than similar offerings from competitors.

Market Analysis

A quantitative and qualitative assessment of the market, including size, customer segments, buying patterns, and competition.

PESTLE Analysis

A study of macro environment factors including Political, Economic, Social, Technological, and Ecological environments.

Enterprise Strategy

Corporate strategy within a business dealing with issues that affect the firm as a whole.

Enterprise Delivery System (EDS)

The process that starts from Input (resources), proceeds to Throughput (transformation), and produces Output (goods/services) to achieve Outcomes.

Input

The part of the EDS involving the harnessing of human, money, and physical resources.

Throughput (Transformation)

The part of the EDS involving the conversion of input into output within the factory or service shop.

Financial Forecast

An estimation or projection of likely future income or revenue and expenses.

Financial Plan

A plan that lays out the necessary steps to generate future income and cover future expenses.

Expected Return on Sales (ROS)

A financial metric calculated in the business plan to quantify profitability relative to revenue, denoted as $\text{ROS}$.

Expected Return on Assets (ROA)

A financial metric representing profitability relative to total assets, denoted as $\text{ROA}$.

Internal Rate of Return (IRR)

A calculation used in the business plan to evaluate long-term returns using the time value of money, denoted as $\text{IRR}$.

Net Present Value (NPV)

A financial calculation used to determine the value of a business venture over time, denoted as $\text{NPV}$.