Vocabulary-Lecture-Test 2 Flashcards Preview

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Flashcards in Vocabulary-Lecture-Test 2 Deck (81):
1

The exercise of prudence, such as would be expected of a reasonable person, in the careful evaluation of a business opportunity.

Due Diligence

2

Specialized brokers that bring together buyers and sellers.

Matchmakers (Business Brokers)

3

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.

Family

4

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.

Family Business

5

Couples teams who own and manage businesses.

Co-preneurs

6

Commitment based on being something that the family member "ought to" do.

Obligation-Based Commitment

7

Commitment based on being something that the family member "wants to" do.

Emotional Attachment (Desire-Based Commitment)

8

Commitment based on being something that the family member "has to" do.

Cost-Based Commitment

9

Commitment based on being something that the family member "needs to" do.

Need-Based Commitment

10

A document that outlines the basic concept underlying a business and describes how that concept will be realized.

Business Plan

11

An abbreviated business plan that presents only the most important issues and projections for the business.

Mini-Plan (Short Plan, Abbreviated Plan)

12

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.

Comprehensive Plan

13

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)

14

A section of the business plan that describes the product and/or service to be provided and explains its merits.

Product/Service Plan

15

A section of the business plan that describes how the firm will reach and service customers within a given market.

Marketing Plan

16

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

17

A section of the business plan that describes a new firm's organizational structure and the backgrounds of its key employees.

Management Team Section

18

A section of the business plan that identifies the potential risks that may be encountered by an investor.

Critical Risks Section

19

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.

Offering

20

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.

Financial Plan

21

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

22

A disclosure document that describes a financial security for potential buyers (investors).

Prospectus (Offering Memorandum)

23

Business activities that direct the creation, development, and delivery of a bundle of satisfaction from the creator to the targeted user.

Small Business Marketing

24

The fundamental benefit or solution sought by customers.

Core Product/Service

25

The basic physical product and/or service that delivers those benefits.

Actual Product/Service

26

The basic product and/or service plus any extra or unsolicited benefits to the customer that may prompt a purchase.

Augmented Product/Service

27

The process of locating and describing potential customers.

Market Analysis

28

The combination of product/service, pricing, promotion, and distribution activities.

Marketing Mix

29

A description of potential customers in a target market.

Customer Profile

30

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.

Intellectual Property

31

The gathering, processing, interpreting, and reporting of market information.

Marketing Research

32

Market information that has been previously complied.

Secondary Data

33

New market information that is gathered by the firm conducting the research.

Primary Data

34

A group of customers or potential customers who have purchasing power and unsatisfied needs.

Market

35

The division of a market into several smaller groups, each with similar needs.

Market Segmentation

36

Specific characteristics that distinguish market segments according to the benefits sought by customers.

Benefit Variables

37

Specific characteristics that describe customers, their purchasing power, their consumption patterns, and other factors.

Demographic Variables

38

A strategy that defines the total market as the target market.

Unsegmented Strategy (Mass Marketing)

39

A strategy that recognizes different preferences of individual market segments and develops a unique marketing mix for each.

Multisegment Strategy

40

A strategy that recognizes the existence of several distinct market segments but focuses on only the most profitable segment.

Single-Segment Strategy

41

A prediction of how much a product or service can be sold within a given market during a specified time period.

Sales Forecast

42

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)

43

A forecasting method in which all potential buyers in a target market's submarkets are identified and the estimated demand is added up.

Buildup Process

44

A forecasting method in which sales is the estimated variable.

Direct Forecasting

45

A forecasting method in which variables related to sales are used to project future sales.

Indirect Forecastingq

46

Managers and other key persons who give a company its general direction.

Management Team

47

An interconnected system of relationships with other people.

Social Network

48

The advantage created by an individual's connections in a social network.

Social Capital

49

A powerful sense of obligation to repay in kind what another has done for or provided for us.

Reciprocation

50

A business owned by one person, who bears unlimited liability for the enterprise.

Sole Proprietorship

51

Liability on the part of an owner that extends beyond the owner's investment in the business.

Unlimited Liability

52

A legal entity formed by two or more co-owners to operate a business for profit.

Partnership

53

A document that states explicitly the rights and duties of partners.

Partnership Agreement

54

The liability of each partner resulting from any one partner's ability to legally bind the other partners.

Joint and Several Liability

55

`A document or clause conferring the authority to act as an agent on another's behalf in a particular context.

Agency Power

56

A business organization that exists as a legal entity and provides limited liability to its owners.

Corporation

57

A business organization that is recognized by the law as having a separate legal existence.

Legal Entity

58

An ordinary corporation, taxed by the federal government as a separate legal existence.

C-Corporation

59

A document that establishes a corporation's existence.

Corporate Charter

60

A document specifying the number of shares owned by a stockholder.

Stock Certificates

61

The right of stockholders to buy new shares of stock before they are offered to the public.

Preemptive Right

62

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

63

A partnership with at least one general partner and one or more limited partners.

Limited Partnership

64

A partner in a limited partnership who has unlimited personal liability.

General Partner

65

A partner in a limited partnership who is not active in its management and has limited personal liability.

Limited Partners

66

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)

67

A form of organization in which owners have limited liability but pay personal income taxes on business profits.

Limited Liability Company

68

A form of corporation that shields owners from liability and is set up for individuals in certain professional practices.

Professional Corporation

69

A form of corporation for enterprises established to serve civic, educational, charitable, or religious purposes; not for generation of profits.

Nonprofit Organization

70

Verification of whether a nonprofit organization is staying true to its stated purpose.

Organizational Test

71

An organizational relationship that links two or more independent business entities in a common endeavor.

Strategic Alliance

72

The governing body of a corporation, elected by the stockholders.

Board of Directors

73

A group that serves as an alternative to a board of directors, acting only in an advisory capacity.

Advisory Board

74

A facility that provides shared space, services, and management assistance to new businesses.

Business Incubator

75

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.

Business Model

76

A business model based on selling to business customers electronically.

Business-to-Business (B2B) Model

77

A business model based on selling to final consumers electronically.

Business-to-Consumer (B2C) Model

78

Web-based business offering participants the ability to list products for consumer bidding.

Auction Sites

79

A business model in which a website simply provides information about a business, its products, and other related matters.

Information-Based Model

80

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.

Content-Based Model

81

A business model in which a website provides a mechanism for buying or selling products or services.

Transaction-Based Model