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17 terms

Management Chapter 6

STUDY
PLAY
entrepreneurship
the process of initiating a business venture, organizing the necessary resources, and assuming the associated risks and rewards
entrepreneur
someone who recognizes a viable idea for a business product or service and carries it out
internal locus of control
the belief by individuals that their future is within their control and that external forces have little influence
external locus of control
the belief by individuals that their future is not within their control but rather is influenced by external forces
need to achieve
a human quality linked to entrepreneurship in which people are motivated to excel and pick situations in which success is likely
tolerance for ambiguity
the psychological characteristic that allows a person to be untroubled by disorder and uncertainty
social entrepreneur
an entrepreneurial leader who is committed to both good business and changing the world for the better
business plan
a document specifying the business details prepared by an entrepreneur prior to opening a new business
sole proprietorship
an unincorporated business owned by an individual for profit
partnership
an unincorporated business owned by two or more people
corporation
an artificial entity created by the state and existing apart from its owners
debt financing
borrowing money that has to be repaid at a later date in order to start a business
angel financing
financing provided by a wealthy individual who believes in the idea for a start-up and provides personal funds and advice to help the business get started
equity financing
financing that consists of funds that are invested in exchange for ownership in the company
venture capital firm
a group of companies or individuals that invests money in new or expanding businesses for ownership and potential benefits
franchising
an arrangement by which the owner of a product or service allows others to purchase the right to distribute the product or service with help from the owner
business incubator
an innovation that provides shared office space, management support services, and management advice to entrepreneurs