STARTING A BUSINESS Flashcards
Entrepreneur
Someone who starts and runs a business and has responsibility for the risks involved
Enterprise
The willingness and ability to think of a new business idea and take risks in starting up a new business.
Opportunity Cost
The cost of an activity expressed in terms of the next best alternative, and which has to be given up when making a choice
Government Grants
Sums of money given to a business for a specific purpose or project, grants don’t have to be paid back
Brainstorming
A process for generating innovative and creative ideas through open-ended group discussion
Franchise
A form of business contract in which the franchisor already has a successful product or service, an agrees to sell the franchisee the right to use the name, logo and trading methods of the business
Franchisor
The business selling the franchise agreement to the franchisee
Franchisee
The entrepreneur who buys the franchise agreement from the franchisor business
Copyright
The protection given to books, plays, films and music
Patent
An exclusive right to use a process or produce a product, usually for a fixed period of time, up to 20 years
Trademark
A word, image, sound or smell that enables a business to differentiate itself from its competitors
Input
Something that contributes to the production of a product or service
Output
Something that occurs as a result of the transformation of business inputs
Added Value
The difference in value between the price of the finished product and the cost of materials
Business Plan
A written document describing the nature of the business, its objectives , marketing strategy, and projected cash flow forecast and income statement
