vocab
What is commonly known as a foundation trait that helps an individual perform in the workplace or gain success in a career?
Transferable skill
Buying a ______ gives the person the right to sell an established product.
franchise
What are the five P’s of entrepreneurship?
People, profit, purpose, passion, and persistence
What is the difference between equity and debt financing?
Equity financing is capital brought into the business in exchange for a percent of ownership in the business, whereas debt financing is borrowing money that must be repaid for use in a business.
history of profitable operations, proven products and sale strategies, experienced employees and operating procedures are in place, easier to secure financing for an established business, and guidance and advice from the previous owner are all advantages of what?
Purchasing an existing business
What is a mission statement?
A sentence that describes the purpose of the business.
_______ are necessary to perform the required work-related tasks of a position.
Job-specific skills
What is one of the most important traits of an entrepreneur?
Leadership
What is the importance of Pro forma financial statements?
Pro forma financial statements are good estimates of future business performance, sales, and expenses.
What is it always smart to write and use when establishing a start up strategy?
business plan
What is it called when it refers to the property or items of value a business owns?
Assets
_______ is the process of setting goals and deciding how to achieve them.
Planning
What is the difference between an entrepreneur and entrepreneurship?
An entrepreneur is a person who starts a new business, whereas entrepreneurship is willingly risking resources to start and run a business in pursuit of profit.
What are the 3 financial statements that should be included in a pro forma financial statement?
pro forma balance sheet, pro forma income statement, pro forma cash flow statement.
Purchasing an existing business has many advantages, but it also comes with disadvantages such as…..
purchasing price of an established business might be more expensive than starting a new business from scratch.
What is money invested in a business by investors who form partnerships or groups to pool investments?
Venture capital
Cash flow is the _______ of _______ into and out of a business.
movement of money
What is any entrepreneur's main focus?
Profit
What is the key term used to describe the way a business is financed?
capital structure
What is the difference between franchise, franchisee, and franchisor?
A franchise is a license to sell a company’s goods and services, a franchisee is a person or company that buys a franchise, and a franchisor is a person or company that grants a franchise.
What is an asset pledged that will be claimed by the lender if the loan is not repaid?
Collateral
Businesses can fail due to ________, _________, ________, ________,_________,________, and ________.
lack of money, lack of business experience, poor management skills, inefficient inventory control, poor credit management, poor location, and improper budgeting.
What are the sources of advice for small business owners?
Professional advice, mentors, and the Small Business Administration
What might the appendix include?
company brochures, copies of published articles about the company, and photographs of the products
What do successful entrepreneurs do in order to gather and analyze information about a business?
Market Research