Terms and concepts
This is the process of starting a new business.
Money put into a business with the expectation of generating profit.
What is capital?
The process of promoting and selling products or services.
What is marketing?
The process of planning, organizing, and overseeing a business’s operations.
What is management?
The study of managing and allocating resources over time.
What is finance?
A structured plan outlining how a business will operate and achieve its goals.
What is a business plan?
This term describes the risk of losing some or all of an investment.
What is investment risk?
This term refers to the specific group of consumers to whom a business targets its products.
What is a target market?
The ability to motivate employees to achieve high performance and productivity.
What is leadership?
This financial statement summarizes a company's revenues and expenses over a period.
What is an income statement?
This term refers to the ability to create and innovate, often essential in entrepreneurship.
What is creativity?
A financial projection that estimates future income and expenses.
What is a cash flow forecast?
A marketing strategy that involves creating a unique image or identity for a product.
What is branding?
This term refers to the process of setting goals and determining how to achieve them.
What is strategic planning?
A legal obligation to pay a debt or fulfill a contract.
What is liability?
The act of influencing others to support and participate in a business venture.
What is persuasion?
This investment approach involves diversifying assets to reduce risk.
What is portfolio diversification?
The analysis of market trends, competition, and consumer preferences.
What is market research?
The act of monitoring and evaluating business performance.
What is performance management?
This term refers to the net worth of a business, calculated as assets minus liabilities.
What is equity?
This term represents the potential financial gain or loss from an investment.
What is return on investment (ROI)?
The type of funding that comes from personal savings or funds from family and friends.
What is bootstrapping?
A marketing technique that uses social media platforms to engage with customers.
What is social media marketing?
This refers to the division of labor and delegation of tasks within an organization.
What is organizational structure?
The practice of evaluating the profitability of an investment.
What is financial analysis?