Chapter 6 Vocab and Quiz – Flashcards
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Advertising Support Model
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charging fees to advertise on site
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affiliate model
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charging fees to direct site visitors to other companies' on site
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business incubators
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protected environment for new small businesses, offering low rents and shared costs
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bootlegging
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informal work of projects other than those officially assigned, of employees' own choosing and initiative
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business plan
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a formal planning step that focuses on the entire venture and describes all the elements involved in starting it
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entrepreneur
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an individual who establishes a new organization without the benefit of corporate sponsorship
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entrepreneur orientation
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the tendency of an organization to identify and capitalize successfully on opportunities to launch new ventures by entering new or established markets with new or existing goods or services
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entrepreneur venture
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a new business having growth and high profitability as primary objectives
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entrepreneurship
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the process by which enterprising individuals initiate, manage, and assume the risks and rewards associated with business venture
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franchising
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an entrepreneurial alliance between a franchisor (an innovator who has created at least one successful store and wants to grow) and a franchisee (a partner who manages a new store of the same type in a new location)
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initial public offering (IPO)
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sale to the public, for the first time, of federally registered and underwritten shares of stock in the company
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intermediary model
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charging fees to bring buyers and sellers together
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legitimacy
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people's judgement of a company's acceptance, appropriateness, and desirability, generally stemming from company goals and methods that are consistent with societal values
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intrapreneurs
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new venture creators working inside big companies
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opportunity analysis
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a description of the good or service, an assessment of the opportunity, an assessment of the entrepreneur, and specification of activities and resources needed to translate your idea into a viable business and your source(s) of capital
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side street effect
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as you head down a road, unexpected opportunities begin to appear
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skunkworks
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a project team designated to produce a new, innovative product
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small business
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a business having fewer than 100 employees, independently owned and operated, not dominant in its field, and not characterized by many innovative practices
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social capital
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a competitive advantage in the form of relationships with other people and the image other people have for you
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subscription model
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charging fees for site visits
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transaction fee model
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charging fees for goods and services
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A small business
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Often defined as having fewer than 100 employees, as well as being independently owned and operated
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false
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True/False: An entrepreneur in not a manager but engages in additional activities that all managers do
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Entrepreneurs
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Who experiences stress but also has high job satisfaction?
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Business Incubators
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Often located in industrial parks or abandoned factories, are protected environments for new, small businesses
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they hesitate to delegate work
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What happens to the entrepreneurs as the business grows?
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Intrepreneur
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While working at a software company, Ronald has created a new venture based solely on his idea while using his company's proprietary technology. Ronald can be described as an:
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Entrepreneurial Venture
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Eddie was a manager at a company that produced household appliances. He had many innovative ideas to increase profit. However, his ideas were not received well by the company. So, he left the company to pursue his own business. His new business is known as an:
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A Great Idea
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When creating a new business one should start with:
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Affiliate Model
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In the context of successful business models for e-commerce, what model involves charging fees to direct internet website visitors to other companies websites?
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A Franchisee
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Laura, an enterprising individual, wants to open a store in town. She wants her store to be of the same type as a popular coffee chain that is successfully operating in a city nearby. What does Lara want to become?
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side street effect
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Refers to the appearance of unexpected opportunities as one follows a plan
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succeed
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Tolerance of risk, ambiguity, and uncertainty helps an entrepreneur to
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high innovation/high risk
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In the context of the entrepreneurial strategy matrix, a novel product idea that involves a large financial investment would be described as:
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entrepreneurial ventures
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Successful companies do not always require a cutting-edge technology or an existing new product, this is true when referring to:
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delegate work
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In the context of common management challenges, leadership deteriorates into micromanagement when entrepreneurs fail to:
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Succession planning
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The success of entrepreneurial venture is often jeopardized by the death of the founder. What is an important measure to minimize this problem?
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Initial Public Stock Offerings
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What offers a way for a business to raise capital through federally registered and underwritten sales of shares in the company?
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Someone outside of the family or company
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According to Peter Drucker who should help plan succession with respect to managing a family business?
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formal control systems
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Entrepreneurs, in part because they are very busy, often fail to use what? This results in inadequate margins to support growth.
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an opportunity analysis
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A description of the good or service, an assessment of the opportunity, an assessment of the entrepreneur, specification of activities and resources needed to translate the idea into a viable business, and the source(s) of capital together make up what?
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business plan
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To ensure the success of the business is a function of the:
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opportunity
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Which key planning element involves a competitive advantage that can be defended and should be focused on customer?
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legitimacy
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Peoples judgement of a company's acceptance, appropriateness, and desirability, generally stemming from company goals and methods that are consistent with societal values is know as:
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develop an effective top management team
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An an organization grows, the successful entrepreneur will:
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skunkwork
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Orlando works as a technician for a large manufacturer of biomedical equipment. Orlando has discovered a way to produce disposable products in large quantities that will be useful in research facilities. His employer has given Orlando and a selected team of researchers the resources to develop this idea. This project is referred to as:
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rewarding risk taking
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What does successfully fostering and managing intrapreneurship involve?
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entrepreneurial orientation
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The tendency of an organization to engage in activities designed to identify and capitalize successfully on opportunities to launch new ventures by entering new or established markets with new or existing goods or services is known as:
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Over relying on a single large product
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What is the most dangerous risk in intrapreneurship?
