Entrepreneurship Unit 2

Behavioral Segmentation

Used to identify purchasing behavioral patterns of customers

Customer Profile

Captures geographic, demographic, psychographic, and behavioral characteristics

Demographic Segmentation

the division of a market using statistical data

Geographic Segmentation

The unique needs and wants of people in geographic areas to create and market product

Market Identification

To discover where, how, and with whom a business will be most profitable when selling

Market Segmentation

Used to narrow a market into small, specific groups.

Market Share

The percentage of the market for a product or service that a company supplies

Marketing

The process or technique of prom sting, selling, and distributing a product or service

Marketing Concept

A method of selling that involves analyzing customer wants and needs and aiming to fulfill them better then competitors

Psychographic Segmentation 

The lifestyle analysis of customer values, attitudes, and preferences, assists marketers in predicting psychological influences and purchasing priorities

SWOT Analysis

A business tool that evaluates a companies strengths, weaknesses, opportunities, and threats

Target Market

The specific group of people a business will sell too

Accounting

The system of recording, summarizing, and analyzing business and financial transactions

Accounts Payable

The balance due to a creditor on a current account

Accounts Receivable

the balance due from a debtor on a current account

Balance Sheet

used by all business types to detail assets, liabilities, and owners equity at one specific moment in time

Budget

a detailed estimate of income and expenses for a specific period of time

Cash Flow Statement

indicate the flow of cash through a business

Fixed Expense

Money spent on something that costs the same amount each month

Income Statement

statements detail a company’s financial performance by showing revenue and expenses over a period of time.

Variable Expense

fluctuates from month to month and is dependent on production and sales volume

Angel Investor

an investor who makes a one-time start-up gift to a business venture, may offer equity financing.

Bootstrapping

to launch and maintain a business by exhausting whatever existing resources an entrepreneur has and with minimal cash.

Closed-end credit

an agreement or contract that states the repayment terms, such as the number of payments, the interest rate, and the monthly payment.

credit report

records of financial and credit history.

credit score

a numerical summary of the information contained on a person’s credit report.

crowdfunding

the collection of small investments from a large number of individuals, to finance their business.

crowdsourcing

the practice of obtaining needed services, ideas, or content by soliciting contributions from a large group of people

Debt financing

when an entrepreneur takes out loans to finance business ventures

equity financing

occurs when money is given to a venture through the purchase of stock of a business.

open-end credit

involves loans made on a continuous basis as purchases are made.

venture capital

The money investors use to fund start-ups and forge partnerships with owners 

Business-to-Business

Business sell products to other business

Business-to-Customer

Business that sell directly to a consumer. Purchase items such as food, gifts, computers, phones, ect.

Cooperative

A a type of business that is owned and managed by members of a group who benefit from services the business provides.

Corporation

A a business owned by stockholders who share in profits and losses. Legally separate from its owners

Limited Liability Company

A type of ownership that joins elements of a corporation and a partnership. There is no limitation to how many owners an LLC can have.

Partnership

A form of business owned by two or more individuals who share management and profits

Regulation

Types of laws that declare government control

S-Corporation

A corporation that requires its owners to file their profits and losses on their personal tax returns

Sole Proprietorship

A business owned and operated by a single individual

Economic Utility

the value and usefulness created by business activities.

Exchange Rate

the amount one currency is worth in another form of currency.

Unemployment rate

percentage of people without jobs and wages, rises.

Economic Resource

are the goods and services businesses use to meet consumer wants and needs.

Scarcity

the problem of trying to meet infinite wants with limited resources

Export

are goods that are produced and shipped from one country into another country

Globalization

The process by which businesses or other organizations develop international influence or start operating on an international scale

import

goods and services made in a foreign country and shipped into another country

inflation

a general increase in prices and fall in the purchasing value of money

interest rate

a percentage of a loan that is charged to the borrower incrementally

law of diminishing returns

at any given stage of technological advance an increase in productive factors, such as labor or capital, applied beyond a certain point fails to bring about a proportional increase in production

macroeconomics

the study of large-scale economic factors that indicate the condition of the economy

monopolistic competition

when many businesses in a market are selling products that are slightly different from one another

monopoly

a market structure where a single business has exclusive control of a market

oligopoly

a market structure where a small number of businesses have control of a market

opportunity cost

an economic concept that represents the benefits that would have been received by choosing the alternative

perfect competition

a theoretical market structure where many businesses sell identical products

pop-up shop

are retail stores for a limited amount of time in a limited space with no overhead above and beyond the space rental