Key Terms
A person who identifies an opportunity and organizes a venture to pursue it.
Entrepreneur
This entrepreneur primarily focuses on profit growth and market expansion.
Business entrepreneur
T/F: All entrepreneurs must assume at least some risk when starting a business.
True
What is sole proprietorship?
A business owned by one individual
T/F: A partnership company cannot legally have more than two owners.
False
!!!DOUBLE POINTS!!!
Acting honestly and consistently with moral principles.
Integrity
This entrepreneur builds a business mainly around personal interests or hobbies.
Lifestyle entrepreneur
A business that makes products from raw materials.
Manufacturing business
A business that sells goods directly to consumers.
Retail business
A business that sells goods in bulk to other businesses.
Wholesale business
The pursuit of opportunity beyond resources currently controlled.
What is the first step to becoming an entrepreneur?
Identify a real problem or unmet need
This type of entrepreneur tackles social problems with business solutions
Social entrepreneur
A business that provides intangible work rather than physical goods.
Service business
T/F: For a company's product to sell, there must be preexisting demand for it.
False! Entrepreneurs can sometimes CREATE new demand by introducing products people didn’t previously realize they wanted or needed.
Individuals or groups who affect or are affected by a business’s actions.
Stakeholders
This type launches multiple ventures over time rather than just one.
Serial entrepreneur
A business built around environmentally sustainable practices.
Green business
Define LLC
Hybrid ownership structure that provides limited liability of a corporation with tax efficiencies and operational flexibility of a partnership
Name two women entrepreneurs
Answers will vary
Taking responsibility for decisions and being answerable to others.
Accountability
!!!DOUBLE POINTS!!!
This term refers to when an entrepreneur relies heavily on their own time, networks, and money to get started; cuts costs ruthlessly.
Bootstrapping
3 ways in which entrepreneurship is important to society are...?
1) Jobs and wealth
2) Innovation
3) Personal empowerment
Identify 4 characteristics of successful entrepreneurs (of the 8 listed in class)
Risk-Tolerant
Innovative
Willing to work hard
Open-Minded
Flexible
Knowledgeable
Confident
Determined
Major stakeholders for any business include... (name 4 that were covered in class)
Co-owners
Employees
Investors
Customers
Suppliers