rsm100

Outsourcing

Contracting work to external vendors to save costs and focus on core strengths.

Offshoring

 Relocating processes abroad to reduce costs.

Nearshoring

Outsourcing to nearby countries for efficiency and lower costs.

Critical thinking

 Ability to assess authenticity, accuracy, and value of information to make sound decisions

Creativity

Capacity to develop novel ideas or better business solutions.

Vision

Leaders’ ability to foresee marketplace needs and guide organizational direction.

Networking saying

It’s not about who you know- it’s about who knows you

Microeconomics

 Study of how individuals, households, and firms allocate scarce resources

Demand Curve

Downward-sloping graph showing higher demand at lower prices

Supply Curve

Upward-sloping graph showing greater supply at higher prices.

Market Equilibrium

Point where demand and supply meet, setting price/output

Elasticity of Demand

Responsiveness of demand to price changes; luxuries = elastic, necessities = inelastic.

Small business (# of employees)

1-99

Medium business (# of employees)

100-499

Large business (#of employees)

500+

Business Plan (5 sections)

-executive summary

-introduction

-marketing/financials

-résumés of principals

-risk assessment

Entrepreneurship

Accepting risk to start and run a business

Entrepreneur’s Vision

 Clear idea of business purpose and goals.

Seed Capital

 Small initial funding used to test/start a business.

Debt Financing

Borrowed funds that must be repaid with interest.

Equity Financing

 Selling ownership shares to investors for capital

Venture Capitalists

 Firms that invest in high-potential businesses in exchange for equity/control.

Angel Investors

Wealthy individuals who invest directly in start-ups

Intrapreneurship

Innovation within an existing company

Sunkworks

A special separate team within a company tasked with innovation

Internal locus of control

A characteristic of entrepreneurs- belief that one is in control of their own success and failure

Tolerance for failure

Learning from failures rather than using them as proof to give up

Tolerance for ambiguity

Comfort with uncertainty and rapid change

Sole proprietorship

Owned by one person; simple and direct control, but unlimited liability

Partnership

 Owned by 2+ people; shared resources and risks, but conflicts and unlimited liability possible