Chapter 6 – Entrepreneurship and Small Business Management Vocabulary – Flashcards
Unlock all answers in this set
Unlock answersquestion
Entrepreneur
answer
Someone who takes a risk in starting a business to earn a profit.
question
Entrepreneurship
answer
The process of starting, organizing, managing, and assuming the responsibility for a business.
question
Venture Capital
answer
Money provided by large investors to finance new products and new businesses that have a good chance to be very profitable.
question
Innovation
answer
An invention or creation that is brand new.
question
Improvement
answer
A designed change that increases the usefulness of a product, service, or process.
question
Small Business
answer
An independent business with fewer than 500 employees.
question
Small Business Administration (SBA)
answer
A government agency that helps small business owners develop business plans and obtain financing and other support for their companies.
question
Business Plan
answer
A written description of the business idea and how it will be carried out, including all major business activities.
question
Start-up financing
answer
The amount of money needed to open the business.
question
Short-term financing
answer
The money needed to pay for the current operating activities of a business.
question
Long-term financing
answer
The money needed for the main resources of a business (such as land, buildings, and equipment) that will last for many years.
question
Proprietorship
answer
A business owned and run by just one person.
question
Partnership
answer
A business owned and controlled by two or more people who have entered into a written agreement.
question
Corporation
answer
A separate legal entity formed by documents filed with your state. It is owned by one or more shareholders and managed by a board of directions.
question
Franchise
answer
A written contract granting permission to operate a business to sell products and services in a set way.
question
Partnership agreement
answer
A written agreement among all owners detailing the rules and produces that guide ownership and operations.
question
Articles of incorporation
answer
A written legal document that defines ownership and operating procedures and conditions for the business.
