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Intro to Business > chapter 7 > Flashcards

chapter 7 Flashcards

1
Q

what is an entrepreneur?

A

people who combine inputs of natural resources, labor and capital to produce goods or services with the intention of making a profit or accomplishing non for profit goal

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2
Q

what are entrepreneurs described as?

A

people with vision, drive and creativity who are willing to take the risk of starting and managing a business to make a profit

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3
Q

is entrepreneurship always small business?

A

no

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4
Q

are small business and entrepreneurship different?

A

yes

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5
Q

can entrepreneurs be small business owners?

A

yes

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6
Q

what is the difference between the intent of small business and the intent of entrepreneurship?

A

small business is fine remaining small and does try to innovate and grow to become a larger company or corporation

entrepreneurship may start small but the intention is to grow to a large scale company corporation and revolutionize the market

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7
Q

what is the intent of small business?

A

small business is fine remaining small and does try to innovate and grow to become a larger company or corporation

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8
Q

what is the intent of entrepreneurship?

A

entrepreneurship may start small but the intention is to grow to a large scale company or corporation and revolutionize the market

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9
Q

what are the 4 ways entrepreneurial ventures differ from small business?

A

amount of wealth creation
speed of wealth creation
risk
innovation

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10
Q

why is the amount of wealth creation different from entrepreneurship and small business?

A

small business is okay with just making enough to pay the bills and to just keep the business running

entrepreneurship wants to create a lot of wealth so they can continue to grow and innovate

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11
Q

why is the speed of wealth creation different in entrepreneurship and small business?

A

small business is not concerned with growing income fast, small mom and pop shops are happy just keeping the business alive and not wanting to make money quick

entrepreneurship wants to create wealth as fast as possible to grow, create and innovate as fast as they can

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12
Q

why is risk different in small business and entrepreneurship?

A

small business is only risking what they can afford to lose

entrepreneurship is making more risk so they can innovate faster than competition

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13
Q

why is innovation different in small business and entrepreneurship?

A

small business is operating a family business or a business that was already existing

entrepreneurship is normally starting something that is new and innovative and brings something new to the market

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14
Q

what is entrepreneurship?

A

taking a risk to either create a new business or to greatly change the scope and direction of an existing one

entrepreneurs are typically innovators who start companies to pursue their ideas for a new product or service

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15
Q

what is a small business owner?

A

managers or people with technical expertise who started a business or bought an existing small business and made a conscious decision to stay small

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16
Q

what is an example of small business vs entrepreneurship?

A

the owner of a local independent bookstore is a small business owner. Jeff Bezos, founder of Amazon, also sells books. but Bezos is an entrepreneur because he revolutionized the bookselling world

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17
Q

what are the 6 reasons people take the entrepreneurial challenge?

A

opportunity presents itself (to fill a customers needs, or they have a skill or resources)

new idea, product or product
profit
challenge
family pattern
independence

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18
Q

explain why if an opportunity presents itself is a reason why people take on the entrepreneurial challenge?

A

they might just find an opportunity to fill a need or they have the certain skills or resources to innovate a market or product

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19
Q

why would a new idea, process or product make someone take on the entrepreneurial challenge?

A

they have an idea for a new product or process and they want to Bring that new idea to market to innovate the market

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20
Q

why is profit a reason why people take on the entrepreneurial challenge?

A

what are wanting to benefit from the potential profits that comes with being a successful entrepreneur?

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21
Q

why is the challenge a reason someone would take on the entrepreneurial challenge?

A

some people like to push their self to do the best they can or being an entrepreneur is a great way to do that

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22
Q

why would a family pattern be a reason why someone would take on the entrepreneurial challenge?

A

sometimes when someone in the family is an entrepreneur it can inspire you to become one or if your family owns a business you could work in it when you are older

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23
Q

why is independence a reason why someone would take on the entrepreneurial challenge?

A

the idea of not heaving to work for someone or needing to meet someone’s employment needs draws someone to become an entrepreneur

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24
Q

what are the four types on entrepreneurs?

A

classic entrepreneurs
micropreneurs
multipreneurs
intrtapreneurs

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25
Q

what is a classic entrepreneur?

A

a risk taker who starts their own companies based on innovative ideas and bringing new products to market

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26
Q

what is a micropreneur?

A

micropreneurs are someone who starts small and plans to stay small they normally have 1-4 employees

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27
Q

can a classic entrepreneur be a micropreneur?

A

yes

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28
Q

what is a multipreneur?

A

multipreneurs are someone who starts a series of companies. they thrive on the challenge of building a business and watching it grow (start with one entrepreneurial venture and it presents an opportunity for another one)

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29
Q

what is an intrepreneur?

A

they are entrepreneurs that don’t own their own companies but apply their creativity, vision and risk-taking within a large corporation. enjoy the freedom to grow ideas and develop products but with less risk due to being part of a big corporation

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30
Q

what are the 7 things it takes to be an entrepreneur?

A

self-directed- self starter with confidence (need to be able to push your self)

self-nurturing and have belief in their idea (believe in how their skills will help the innovation)

action oriented (not lazy and willing to do work to succeed)

highly energetic (very long hours when starting, potentially 12 hour days 7 days a week)

tolerant of uncertainty (able to take risks and tolerate failure and grow from it)

able to learn quickly (learn about markets, global markets, laws and regulation and use that knowledge to improve)

passionate and persevering (have to be all in and passionate about your entrepreneurial venture)

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31
Q

why are the 9 characteristics of entrepreneurs?

A

ambitious (competitive and motivated for a high need of achievement)

independent (self starter who prefers to lead rather than follow)

self- confidant (need to be confidant in their skills and their dreams)

risk-taker (need to take risks to make their innovation succeed)

visionary (ability to spot trends and act on them sets entrepreneurs apart from small business owners)

creative (to compete with larger firms they need to have creative ideas)

energetic (starting and operating a business takes long hours)

passionate (need to love their work)

committed (willing to make personal sacrifices to achieve their goals)

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32
Q

what is defined as a small business?

A

a independently owned and operated business that meets certain standards of size interms of employees or annual revenue

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33
Q

what are the 5 reasons small business is important?

A

contribute to growth and vitality in specific areas of the economic and socio-economic development

create jobs

spark innovation

provide opportunities for many people to achieve financial success and independence, including women and minorities

compliment the economic activity of large organizations by providing them with components, services and distribution of their products

34
Q

what are 10 potential small businesses?

A

home renovation services
pet products and services
catering services
cleaning services
events management services
E-commerce
beauty services
sewing and alteration services
business/life coach services
online course creators

35
Q

what are the 7 things on the check list for starting small business?

A

identify your reasons
self-analysis
personal skills and experience
finding a niche
conduct market research
plan your start up:write a business plan
finances: how you fund your business

36
Q

what are the 7 advantages of a small business?

A

independence

personal satisfaction from work

best route to success

rapidly changing technology

major corporate restructuring and downsizing

outsourcing

small business are resilient

37
Q

why is independence an advantage of small business?

A

you don’t need to report to anyone and can set your own hours

38
Q

why is personal satisfaction from work an advantage of small business?

A

because you are able to do something you love for your job when you own a small business

39
Q

why is best route to success an advantage of small business?

A

has a huge advantage for anyone who is at a disadvantage in life or is a minority or a women because no one else is holding you down and determining your worth and success

40
Q

why is rapidly changing technology an advantage of small business?

A

with technological advances and decreased costs it provides the opportunity to compete in global industries

41
Q

why is major corporate restructuring and downsizing an advantage of small business?

A

major corporate restructuring and downsizing forces many laid off employees to look for other jobs or careers and more people might look towards owning a small business.

it also gives small businesses the opportunity to buy a business unit that a company no longer wants

42
Q

why is outsourcing an advantage of small business?

A

as a result of downsizing, corporations many contact outside firms for services they used to provide in house.

outsourcing creates opportunities for smaller companies that offer these specialized goods and services

43
Q

why is small businesses being resilient an advantage of small business?

A

they can respond fairly quickly to changing economic conditions by refocusing their operations

44
Q

what are the 5 disadvantages of small business?

A

financial risk
stress
time commitment
undesirable duties
limitations

45
Q

why is financial risk a disadvantage of small business?

A

the financial resources to start and grow a small business can be extensive

46
Q

why is stress a disadvantage of a small business?

A

as the business owner, you are the business and you are responsible for the success or failure of that business and some people cannot handle that

47
Q

why is time commitment a disadvantage of a small business?

A

running a business is extremely time-consuming and it can consume your life

48
Q

why are undesirable duties a disadvantage of small business?

A

you have to do somethings that are not your favourite but since you are the owner it will probably fall on you

49
Q

why are limitations a disadvantage of small business?

A

limited in managerial skills or you may encounter difficulties obtaining adequate financing because you are a small business

50
Q

how does government assist small business?

A

they can provide grants, loans and facilities to help you grow

51
Q

why does the government assist small business?

A

because small business makes up 25% percent of the Canadian economy and they can collet more taxes off the business and their employees

52
Q

does more small business in the economy mean that the economy is more self sustaining?

A

yes

53
Q

what are some (6) resources for small businesses that the government offers?

A

business and industry services

business development bank of Canada

innovation, science and economic development canada

canadian chamber of commerce

business accelerator (access to mentorship and investors)

business incubators (space, services, advice, support and financial assistance)

54
Q

what are the 3 causes for small business success?

A

pay attention to competition

business in a growth industry

product is not easily replicated

55
Q

why will paying attention to the competition lead to small business success?

A

because you can see what the competition is doing and how you can improve and be better than the competition

56
Q

why can business being in a growth industry lead to small business success?

A

if your business is in a growing and booming industry then there is a higher possibility of success

57
Q

why can your product or service being easily replicated lead to small business failure?

A

if your product is made by mass production or service is easily replicated than it is easy for people to make a similar product or provide a similar service as you, taking business away from you

58
Q

what are the 12 things that can lead to small business failure?

A

plunging in without first testing testing the waters on a small scale

underpricing or overpricing goods or services

underestimating how much time it will to take to build a market

staring with too little capital

starting with too much capital and being careless in its use

going in to business with little or no experience and without first learning something about the industry or market

borrowing money without planning how and when to pay it back

not allowing for setback and unexpected setbacks

buying to much on credit

extending credit to freely

expanding credit too rapidly

failing to complete accurate records so that the owners drift into trouble without realizing it

59
Q

why can plunging in without first testing on a small scale lead to small business failure?

A

because you need to see if your product or service is something that people want and if it will be profitable

60
Q

why can underpricing or overpricing goods or services lead to small business failure?

A

if you overprice the good or service people wont buy it because of the price but if it is priced to low people will be suspicious of the product and why its priced so low

61
Q

why can underestimating how much time It will take to build a market lead to small business failure?

A

because if you are just looking to make quick money you might not fully develop and take they time for you business to grow in to success

62
Q

why can starting with too little capital lead to small business failure?

A

if you do not have enough financing to grow properly you cannot advance the business

63
Q

why can starting with too much capital and being careless in its use lead to small business failure?

A

need to do your market research so you do not spend carelessly and waste your capital

64
Q

why can going in to business with little or no experience and without learning something about the industry or market lead to small business failure?

A

need to have an understanding of industry or market so you avoid a little mistakes as possible?

65
Q

why can borrowing money without planning how and when to pay it back lead to small business failure?

A

without knowing how your going to be able to pay back debt or not being able to pay back debt can lead to large amounts of interest or creditors taking business and personal assets

66
Q

why can not allowing for setback and unexpected expenses lead to small business failure?

A

because not preparing for unexpected expenses can really cut in to your working capital

67
Q

why can buying to much on credit lead to small business failure?

A

thinking you will be more successful and putting purchases on credit can lead to a lot of liability and potentially bankruptcy

68
Q

why can extending credit too freely lead to small business failure?

A

not making customers pay right away can lead to a lack of revenue if they don’t pay or pay very late and a lack of revenue can lead to bankruptcy

69
Q

why can expanding credit too rapidly lead to small business failure?

A

giving credit to many customers can lead too, to much product out and not enough revenue in

70
Q

why can failing to complete accurate records so that the owners drift in to trouble without realizing it cause to small business failure?

A

because if there is not records of financials, shipments and other important records it can lead to the owner losing money and product without even knowing

not keeping financial records can be very problematic as well for keeping track of money coming in and out of the business

71
Q

what are the 4 ways to get into your first business venture?

A

start your own company

buy an existing franchise unit

inherit or take over a family business

get some experience and ideas

72
Q

what are the 4 functions of managing a small business?

A

planning the business
financing the business
knowing the customers (marketing)
managing the employees
maintaining records (accounting)

73
Q

what are the details (4) of a written business plan?

A

detailed written statement describes:

nature of the business

target market

advantages the business will have over competition and the resources

qualifications of the owners

74
Q

what are the 12 ways to fund a small business?

A

supplier credit
personal savings
personal credit cards
retained earnings
business credit cards
personal lines of credit
leasing
personal loans
loans from friends or relatives
government lending agencies
angel investments
crowd funding

75
Q

what is angel investments?

A

private individuals who invest their own money in potentially hot new companies before they go public

76
Q

what is crowd funding?

A

raising funds through the collection of small contributions from the public via the internet and social media

77
Q
A
78
Q

what are the 10 key elements of a business plan?

A

cover letter
executive summary
company background
management team
financial plan
capital required
marketing plan
location analysis
manufacturing plan
appendix

79
Q

what are the 3 positives of a small business going global?

A

access to world market
absorb (sell) excess inventory
extend product life

80
Q

what are the 4 negatives of small business going global?

A

financing difficult
not knowing how to get started
lack of cultural understanding
paperwork

Intro to Business (25 decks)

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