CHPT4: Entrepreneurship and Business Structure Study Guide

This set of vocabulary flashcards covers key concepts, types, and structures of entrepreneurship and business organizations based on the provided lecture transcript.

Entrepreneur

Someone who starts, owns, and operates a business.

Small Business (Canada)

A company with fewer than a hundred members of staff.

Passion

A key entrepreneurial trait where work ethic and motivation go hand in hand to achieve success.

Risk Tolerance

The willingness of an entrepreneur to take chances to differentiate themselves from competition, even if the result is not as intended.

Persistence

The ability of an entrepreneur to see failure as an opportunity to learn and grow, continuing to work until they reach their goal.

Small business entrepreneurship

Individuals interested in making a profit to support their family and a modest lifestyle, typically running the business themselves.

Scalable startup entrepreneurship

Entrepreneurship focused on finding market gaps and creating technology-focused solutions with the goal of rapid expansion and big profit returns.

Social entrepreneurship

A type of entrepreneurship where the main goal is to solve social problems and make a positive change in the world rather than focusing on profit.

Innovative entrepreneurship

Entrepreneurship aimed at changing the way people live for the better by creating products and services that stand out from the market.

Hustler entrepreneurship

Entrepreneurship characterized by individuals willing to work hard and put in constant effort to achieve their goals through drive and determination.

Imitator entrepreneurship

Entrepreneurship where individuals use others' business ideas but work to improve them and make them more profitable.

Researcher entrepreneurship

Entrepreneurship where the owner relies on facts, data, and logic, performing extensive research before starting the business.

Buyer entrepreneurship

Entrepreneurship where individuals use their wealth to purchase well-established businesses to grow them and expand profits.

Social entrepreneur

An individual committed to a cause, such as reducing poverty or fighting climate change, who starts a business to drive positive change.

Necessity entrepreneur

Someone who starts a business because they cannot find employment, have lost their job, or need to supplement income and require flexibility.

Opportunity entrepreneur

Someone who identifies a chance to make money, gets involved at the right time, and aims for business growth and economic development.

Sole Proprietorship

A simple, unincorporated business owned and operated by one person who has complete control and is fully liable for all business debts.

Partnership

A non-incorporated business owned by two or more people who share profits, responsibilities, and risks, usually involving unlimited liability.

Limited Liability Partnership (LLP)

A partnership structure that allows partners to pool resources while limiting their liability for others’ professional negligence.

Corporation

A separate legal entity from its shareholders that can be incorporated at the federal or provincial level, offering limited liability to its owners.

Agency Problem

A conflict of interest where one party, such as a corporate manager, may not act in the best interest of another party, like the shareholders.

Double Taxation

A situation where corporate profits are taxed at the business level and again at the shareholder level when distributed as dividends.

Co-operative

A business controlled by its members on a democratic basis (one member, one vote) to meet common needs rather than maximize profits for shareholders.

Business Acquisition

A transaction where one company buys the majority or all of another company's shares or assets to gain control.

Vertical Integration

A business strategy where a company buys its supplier or another part of its supply chain to reduce costs and boost profits.

Horizontal Integration

A strategy where one company takes over another operating at the same level in an industry to expand size and reduce competition.

Company Merger

When two or more companies join together to form a new company with a single stock.

Strategic Alliance

A collaborative partnership between two or more businesses to work on a common goal while each company remains independent.

Joint Venture (JV)

A business collaboration where two or more companies create a new, independent legal entity to achieve a specific objective or project.

Business Plan

A document explaining how a business operates, summarizing structure, objectives, milestones, and financial performance.

Executive Summary

The first section of a business plan that recaps the entire document and presents the essence of the business goals.

Business Model Canvas

A strategic planning tool used to illustrate a business model by identifying nine key building blocks, simplifying a business plan into condensed form.

Crowdfunding

An alternative financing method where people contribute money to a cause or business venture via the Internet.

Business Incubator

A specialized program designed as a space for new businesses to learn and grow, offering reduced rates for supplies and workspace.

Business Accelerator

A program designed to help established startups scale quickly, often providing funding in exchange for equity over a short, intense period.