Entrepreneurship Competencies

A set of vocabulary flashcards covering basic business concepts, marketing, records, financial statements, key formulas, and business models.

Value Proposition

Benefits offered to customers

Value for Money

Affordable yet reliable products

Positioning

Taglines and branding that define identity

Consistency

Builds recognition and trust

Emotion & Purpose

Connects with customer values

Ethical Branding

Avoid copying famous logos

Sales Record

Tracks sold products

Inventory Record

Tracks stock levels

Accounts Receivable

Money owed by customers

Liabilities

Debts or obligations

Receipt

Proof of payment

Income Statement

Shows profit/loss

Balance Sheet

Shows assets, liabilities, equity

Revenue

Total sales before expenses

Profit Formula

$$\text{Profit} = \text{Revenue} - \text{Expenses}$$

Fixed Cost

Rent, insurance (unchanging)

Variable Cost

Materials that change with production

Owner's Equity

$$\text{Owner's Equity} = \text{Assets} - \text{Liabilities}$$

Balance Sheet Equation

$$\text{Assets} = \text{Liabilities} + \text{Equity}$$

Selling Price

$$\text{Selling Price} = \text{Cost} + \text{Markup}$$

Core Value

Builds long-term trust

Distribution

Timely delivery leading to customer satisfaction

Risky Model

Low demand + high competition