BBAY Vocab Terms

Entrepreneur

A person who focuses on seeking out opportunities, taking action, and finding ways to solve other people’s problems in a profitable way.

Creative

Involves lateral thinking, challenging assumptions, and learning something new; not accepting typical solutions as the only way to solve a problem.

Innovation

The application of new solutions that meet new or existing market needs through more effective products, processes, or ideas.

Free Enterprise

A business system governed by supply and demand with minimal government interference, allowing anyone to start, own, or sell a business.

Opportunity

Ideas that satisfy customers’ needs at an affordable and profitable price with good timing and sufficient resources.

Opportunity Costs

What one has to give up in order to attain another product, job, or friend.

Decision Making

The process of listing and comparing the costs and benefits of each option before making a choice.

Social Loafer

A team member who is uncooperative and does not contribute to the team.

Limited Partnership (LP)

A partnership with general partners who run the business and limited partners who invest but have limited liability.

Corporation

A separate legal entity from its owners that offers limited liability, centralized management, and perpetual existence.

Intellectual Property

Legal protections for creations of the mind, including inventions, literary and artistic works, and symbols used in commerce.

Brand

The identity of a specific product, service, or business, distinguishing it from competitors.

Mission Statement

A clear representation of an enterprise's purpose, incorporating moral/ethical positions and expectations for growth.

4Ps of Marketing

Product, Place, Price, and Promotion, which are the key elements of marketing strategy.

Capital

Money used to finance a business.

Gross Profit

Income before expenses are subtracted, calculated as Revenue minus COGS.

Balance Sheet

A summary of a company's financial balances, including assets, liabilities, and owner's equity.

Financial Risk

The possibility of losing money on an investment or business venture.

Net Present Value (NPV)

The difference between the present value of a project's benefits and its costs.

Business Model Canvas

A tool used to map out a business or product's key elements including Key Partners, Activities, and Resources.

Customer Segments

Different groups of customers with varying needs that a business aims to serve.

Revenue Streams

The various ways a company generates income from different customer segments.