Flashcards in Vocabulary-Lecture-Test 2 Deck (81):
The exercise of prudence, such as would be expected of a reasonable person, in the careful evaluation of a business opportunity.
Specialized brokers that bring together buyers and sellers.
Matchmakers (Business Brokers)
A group of people bound by a shared history and commitment to share a future together, while supporting the development and well-being of individual members.
An organization in which either the individuals who established or acquired the firm or their descendants significantly influence the strategic decisions and life course of the firm.
Couples teams who own and manage businesses.
Commitment based on being something that the family member "ought to" do.
Commitment based on being something that the family member "wants to" do.
Emotional Attachment (Desire-Based Commitment)
Commitment based on being something that the family member "has to" do.
Commitment based on being something that the family member "needs to" do.
A document that outlines the basic concept underlying a business and describes how that concept will be realized.
An abbreviated business plan that presents only the most important issues and projections for the business.
Mini-Plan (Short Plan, Abbreviated Plan)
A complete business plan that provides an in-depth analysis of the critical factors that will determine a firm;s success of failure, along with all the underlying assumptions.
A section of the business plan that conveys a clear and concise overall picture of the proposed venture and creates interest in the venture.
Executive Summary (Overview)
A section of the business plan that describes the product and/or service to be provided and explains its merits.
A section of the business plan that describes how the firm will reach and service customers within a given market.
A section of the business plan that offers information on how a product will be produced or a service provided, including descriptions of the firm's facilities, labor, raw materials, and processing requirements.
Operations and Development Plan
A section of the business plan that describes a new firm's organizational structure and the backgrounds of its key employees.
Management Team Section
A section of the business plan that identifies the potential risks that may be encountered by an investor.
Critical Risks Section
A section of the business plan that indicates to an investor how much money is needed, and when and how the money will be used.
A section of the business plan that projects the company's financial position based on well-substantiated assumptions and explains how the figures have been determined.
Projections of a company's financial statements for up to five years, including balance sheets, income statements, and statements of cash flows, as well as cash budgets.
Pro Forma Statements
A disclosure document that describes a financial security for potential buyers (investors).
Prospectus (Offering Memorandum)
Business activities that direct the creation, development, and delivery of a bundle of satisfaction from the creator to the targeted user.
Small Business Marketing
The fundamental benefit or solution sought by customers.
The basic physical product and/or service that delivers those benefits.
The basic product and/or service plus any extra or unsolicited benefits to the customer that may prompt a purchase.
The process of locating and describing potential customers.
The combination of product/service, pricing, promotion, and distribution activities.
A description of potential customers in a target market.
Patents, trademarks, and copyrights, which are used to differentiate products and images from those of competitors and prevent rivals from stealing competitive advantage. Also includes trade secrets. Intangible assets of the company.
The gathering, processing, interpreting, and reporting of market information.
Market information that has been previously complied.
New market information that is gathered by the firm conducting the research.
A group of customers or potential customers who have purchasing power and unsatisfied needs.
The division of a market into several smaller groups, each with similar needs.
Specific characteristics that distinguish market segments according to the benefits sought by customers.
Specific characteristics that describe customers, their purchasing power, their consumption patterns, and other factors.
A strategy that defines the total market as the target market.
Unsegmented Strategy (Mass Marketing)
A strategy that recognizes different preferences of individual market segments and develops a unique marketing mix for each.
A strategy that recognizes the existence of several distinct market segments but focuses on only the most profitable segment.
A prediction of how much a product or service can be sold within a given market during a specified time period.
A forecasting method that begins with a variable that has a very large scope and systematically works down the sales forecast.
Breakdown Process (Chain-Ratio Method)
A forecasting method in which all potential buyers in a target market's submarkets are identified and the estimated demand is added up.
A forecasting method in which sales is the estimated variable.
A forecasting method in which variables related to sales are used to project future sales.
Managers and other key persons who give a company its general direction.
An interconnected system of relationships with other people.
The advantage created by an individual's connections in a social network.
A powerful sense of obligation to repay in kind what another has done for or provided for us.
A business owned by one person, who bears unlimited liability for the enterprise.
Liability on the part of an owner that extends beyond the owner's investment in the business.
A legal entity formed by two or more co-owners to operate a business for profit.
A document that states explicitly the rights and duties of partners.
The liability of each partner resulting from any one partner's ability to legally bind the other partners.
Joint and Several Liability
`A document or clause conferring the authority to act as an agent on another's behalf in a particular context.
A business organization that exists as a legal entity and provides limited liability to its owners.
A business organization that is recognized by the law as having a separate legal existence.
An ordinary corporation, taxed by the federal government as a separate legal existence.
A document that establishes a corporation's existence.
A document specifying the number of shares owned by a stockholder.
The right of stockholders to buy new shares of stock before they are offered to the public.
A situation in which the courts conclude that incorporation has been used to perpetuate a fraud, skirt a law, or commit some wrongful act and remove liability protection from the corporate entity.
Piercing the Corporate Veil
A partnership with at least one general partner and one or more limited partners.
A partner in a limited partnership who has unlimited personal liability.
A partner in a limited partnership who is not active in its management and has limited personal liability.
A type of corporation that offers limited liability to its owners and passes taxable income or losses on to stockholders.
S Corporation (Subcharter S Corporation)
A form of organization in which owners have limited liability but pay personal income taxes on business profits.
Limited Liability Company
A form of corporation that shields owners from liability and is set up for individuals in certain professional practices.
A form of corporation for enterprises established to serve civic, educational, charitable, or religious purposes; not for generation of profits.
Verification of whether a nonprofit organization is staying true to its stated purpose.
An organizational relationship that links two or more independent business entities in a common endeavor.
The governing body of a corporation, elected by the stockholders.
Board of Directors
A group that serves as an alternative to a board of directors, acting only in an advisory capacity.
A facility that provides shared space, services, and management assistance to new businesses.
An analysis of how a firm plans to create profits and cash flows given its revenue sources, its cost structures, the required size of investment, and sources at risk.
A business model based on selling to business customers electronically.
Business-to-Business (B2B) Model
A business model based on selling to final consumers electronically.
Business-to-Consumer (B2C) Model
Web-based business offering participants the ability to list products for consumer bidding.
A business model in which a website simply provides information about a business, its products, and other related matters.
A business model in which a website provides information (content) that attracts visitors, usually with the hope of generating revenue through advertising or by directing those visitors to other websites.