Entrepreneurship Industry Certification Exam Review

Vocabulary flashcards covering core concepts of entrepreneurship including roles, economics, marketing strategies, financial tools, and business ownership structures based on the exam blueprint.

Entrepreneur

An individual who undertakes to start and run their own business or with the intention of making a profit.

Entrepreneurship

Activity of setting up a business, taking on financial risks in the pursuit of profit.

Intrapreneur

Valued labor trait where an individual behaves like an entrepreneur to solve problems within an organization.

Common characteristics and ethics involved in entrepreneurship

1. Hard Working

2. Risk Taker

3. Inquisitive

4. Goal & Action Oriented

5. Creative

Growth Mindset

The mindset used to learn from each failure and grow from it within an entrepreneurial venture.

Pivoting

Changing your business direction or strategy based on internal factors or external shifts (like supply chain issues, new regulations, or technology changes)

Minimum Viable Product (MVP)

Version of a product with just enough features to be usable by early customers who can then provide feedback for future product development.

Unique Value Proposition (UVP)

Clear statement that describes the benefit of your offer, how you solve your customer's needs, and what distinguishes you from the competition.

Competitive Advantage

Factors that put a company in a favorable or superior business position in comparison to its rivals.

Scarcity

Unlimited wants and needs and limited resources to satisfy those wants and needs.

Opportunity Cost

The loss of potential gain from alternatives when one alternative is chosen.

Profit Motive

Motivation to operate so as to maximize profits; the ultimate goal of a business is to make money.

Import

Goods or services bought into one country that was produced in another.

Export

Goods and services that are produced in one country then purchased and sent to another country.

Marketing Mix

The combination of Product, Price, Place, and Promotion as they pertain to Entrepreneurship.

Brick-and-mortar stores

A business that operates conventionally rather than over the internet.

E-commerce

Internet commerce; refers to the buying and selling of goods or services using the Internet, and the transfer of money and data to execute these transactions.

Omni-channel

An approach to sales that focus on providing seamless customer experience whether the client is shopping online from a mobile device, a laptop or in a brick-and-mortar store.

Demographic Segmentation

Market segmentation based on personal characteristics such as Age, Gender, Income Level, Education Level, Race, and Ethnicity.

Geographic Segmentation

Market segmentation based on where people live, such as Natural or Political Boundaries, Climate, Cultural influences, and Customs.

Psychographic Segmentation

Involves grouping people with similar lifestyles, as well as shared attitudes, values, and opinions such as Activities, Attitudes, Personality & Values.

Behavioral Segmentation

Looking at the benefits desired by consumers such as shopping patterns, usage rate, and benefits rather than just physical characteristics.

the importance of building a brand and creating a brand image

It establishes a business’s identity, creates competitive advantage, and fosters customer trust and loyalty in the marketplace

the importance of market planning and market research

It minimizes risk by validating business ideas, while market planning outlines how to execute that vision

the importance of a company's online presence and digital marketing

It drives brand visibility, build customer trust, and provide measurable, data-driven ways to outcompete larger, traditional businesses

Start-up costs

All costs incurred to start a business including research, business licensing, website development and more.

Variable costs

Costs that fluctuate based on units of production.

Fixed costs

Costs that stay consistent from month to month, such as rent, utilities, and fees; non-production-related expenses.

Profit Formula

$$Revenue - Cost = Profit$$

Debt financing

Borrowing money that must be repaid with interest.

equity financing

Raising money by selling ownership shares in a business.

What is the biggest difference between debt and equity financing?

Debt must be repaid; equity does not require repayment but gives up ownership.

Bootstrapping

Founding and running a company using only personal finances or operating revenue.

Angel investors

Family and friends who provide capital for a business.

Venture capitalists

• Professional investors or firms that invest large sums in high-growth startups.

Crowdfunding

• Raising small amounts of money from many people through online platforms.

Lines of credit

• A lender provides access to a maximum borrowing amount.

• The entrepreneur borrows only what is needed and pays interest on that amount.

• Useful for managing cash flow and short-term expenses.

Small business loan

A loan from a bank or lender that is repaid over time with interest.

entrepreneurship mentoring

Guidance provided by experienced entrepreneurs to newer business owners.

Why is mentoring important?

It provides advice, support, and networking opportunities.

What is a startup incubator?

An organization that helps early-stage businesses develop through mentorship, resources, and support.

What is a startup accelerator?

A short-term program designed to rapidly grow startups through training, mentorship, and funding opportunities

What is a business plan competition?

A contest where entrepreneurs present business ideas for prizes, funding, or recognition.

What is a pitch competition?

A contest where entrepreneurs present their business idea to judges or investors.

Why are entrepreneurship contests valuable?

They provide feedback, exposure, funding opportunities, and networking.

Business pitch

A brief presentation that explains a business idea to potential investors.

Why is pitching important?

It helps entrepreneurs secure funding and build investor confidence

Pro-Forma

Projected revenue and sources of revenue.

Income statement/Profit and loss statement

A financial statement showing revenues, expenses, and profit over a period of time.

balance sheet

A financial statement showing a company’s assets, liabilities, and owner’s equity at a specific point in time.

Sales forecasting

Predicting future sales revenue

Why is sales forecasting important?

It helps businesses plan inventory, staffing, budgets, and growth.

budget forecasting

Estimating future income and expenses

Why is budget forecasting important?

It helps control spending and prevent cash shortages

How are sales forecasting and budget forecasting connected?

Sales forecasting predicts money coming in, while budget forecasting predicts money going out. Together they guide business planning.

What does the SBDC (Small Business Development Center) provide?

Business counseling, training, workshops, and planning assistance.

What is the primary role of the SBA (Small Business Administration)?

To support small businesses through loans, counseling, and educational resources.

What does SCORE provide to entrepreneurs?

Free mentoring from experienced business professionals

What is the GOED’s (Governor’s Office of Economic Development) main purpose?

To promote economic growth and support businesses through incentives and development programs.

Business license

A permit that allows a business to legally operate.

EIN (Employer Identification Number)

Federal tax ID for a business

Name registry (DBA)

Registration of a business name different from the owner’s legal name.

Sales Tax ID

Allows collection of sales tax

Occupational/professional license

A license required for certain professions such as doctors, electricians, or real estate agents.

Income tax

Tax on a business’s profits

Sales tax

Tax collected from customers on taxable goods and services.

property tax

Tax on business-owned property or real estate.

payroll tax

Tax related to employee wages that helps fund programs like Social Security and Medicare.

Sole proprietorship

Simple business structure owned and run by one individual with no distinction between the business and the owner; owner is responsible for all debts and liabilities.

Partnership

An arrangement between two or more people to oversee business operations and share its profits and liabilities.

Corporation

A legally separate and distinct entity from its owners with limited liability, meaning shareholders are not personally responsible for the company's debts.

Limited Liability Company (LLC)

A U.S. business structure that protects its owners from personal responsibility for debts; a hybrid combining characteristics of a corporation with a partnership or sole proprietorship.

Copyright

The exclusive legal right to reproduce, publish, sell, or distribute the matter and form of something.

Patent

A legal right to an invention given to a person or entity without interference from others who wish to replicate, use, or sell it.

Trademark

A recognizable insignia, phrase, word, or symbol that denotes a specific product and legally differentiates it from all other products of its kind.