GMS 200 Class 10 (Chapter 6) Key Terms 2025/2026

Angel investor

A wealthy individual willing to invest in a new venture in return for an equity stake.

Benefit corporation

A corporate form for businesses whose stated goals are to combine making a profit with benefiting society and the environment.

Business Development Program

A program through the Government of Canada that provides advice to new and existing small businesses.

Business incubator

A facility that offers space, shared services, and advice to help get small businesses started.

Business model

A plan for making a profit by generating revenues that are greater than costs.

Business plan

A description of the direction for a new business and the financing needed to operate it.

Classic entrepreneur

Someone willing to pursue opportunities in situations others view as problems or threats.

Corporation

A legal entity that exists separately from its owners.

Crowdfunding

The online provision of start-up financing from crowds of investors to entrepreneurs starting new ventures.

Debt financing

Borrowing money that must be repaid over time, with interest.

Entrepreneurship

Risk-taking behaviour that results in new opportunities.

Equity financing

Exchanging ownership shares for outside investment monies.

Family business

A business owned and controlled by members of a family.

Family business feud

What occurs when family members have major disagreements over how the business should be run.

First-mover advantage

The benefits that come from being first to exploit a niche or enter a market.

Franchise

What results when one business owner sells to another the right to operate the same business in another location.

Initial public offering

An initial selling of shares to the public at large.

Lean start-ups

Start-ups that use resources like open-source software while containing costs, staying small, and keeping operations as simple as possible.

Limited liability corporation

A hybrid business form combining the advantages of the sole proprietorship, partnership, and corporation.

Necessity-based entrepreneurship

Entrepreneurship that takes place because other employment options don’t exist.

Partnership

A form of business where two or more people agree to contribute resources to start and operate a business together.

Serial entrepreneur

An entrepreneur who starts and runs businesses and non-profits over and over again, moving from one interest and opportunity to the next.

Small business

In Canada, a business that has 5–100 employees, is independently owned and operated, and does not dominate its industry.

Social enterprises

Businesses that have a social mission to help make lives better for underserved populations.

Social entrepreneurship

A form of ethical entrepreneurship that seeks novel ways to solve pressing social problems.

Sole proprietorship

A form of business in which an individual pursues business for a profit.

Start-up

A new venture that is trying to discover a profitable business model for future success.

Succession plan

A plan for how a firm’s leadership transition and related financial matters will be handled.

Succession problem

The issue of who will run a business when the current head leaves.

Venture capitalists

Individuals who make large investments in new ventures in return for an equity stake in the busines