Ch 6 Vocab
Someone who takes a risk by starting a business to try and earn a profit
Entrepreneur
management
Which is not a type source of financing used by entrepreneurs? bonds, venture capital, personal savings, bank loans
bonds
Name 2 elements of a business plan
●the business idea
●major products and services
●ownership structure
●strengths/weaknesses
●long- and short-term goals
●description of customers
●location, number, and resources of customers
●sales forecasts
●organization of the company
●description of major operations
●analysis of resources needed
●human resource plans
what are the three levels of management?
top, middle and supervisors
Money provided by large investors to finance mew products and new businesses that have a good chance to be very profitable
Venture Capital
includes all the activities involved in obtaining, preparing, and compensating the people who work for a business
staffing
What are the new two business opportunities?
innovation and improvement
alternative plans for staffing, planning, operating, etc?
strategic alternatives
top management is mainly responsible for
planning and controlling
invention or creation that is brand new
Innovation
the leadership to motivate individuals and groups to accomplish important goals
leadership
name 2 risks of business start-ups
Lack of adequate capital
Low sales
Higher than expected expenses
Competitive pressure
An owner unprepared to manage a growing business
Operations requiring more time than the owner is willing to commit
the amount of financing it takes to begin a business
start-up financing
middle management is responsible for
organizing, staffing, and implementing
an independent business with fewer than 500 employees
small business
formal influence
name a advantage of small businesses
meeting customer needs, providing unique services
the money needed to pay for the current operating activities of a business
short-term financing
supervisors are responsible for
implementing
written description of a business idea and how it will be carried out
business plan
important principles that will guide decisions and actions in the company
core values
Name a way small businesses receive assistance
●University and college faculty members
●Local groups of business people
●Small Business Administration (SBA) Government agency that helps small business owners develop business plans and obtain financing and other support
money needed for the main resources of a business that will last for many years
long-term financing
a manager may use this style when his employees are very experienced in the work they are required to do
strategic management