| Terms |
Definitions |
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Break-even calculation
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FC / CM
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ROS
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net profit / total sales
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Heather Evans
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long production cycles, financing/control
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role assertion
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unethical acts involving managers/entrepreneures who represent the firm and who rationalize that htey are in a position to help the firm's long-run interests
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ROE
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net profit / total shareholders equity
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variable cost examples
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materials, DL, sales commission
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Howard Head
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patent issues, invention, revolution of sports
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innovation
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the process by which entrepreneurs convert opportunities into marketable ideas
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stereotype
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refers to averages that people fabricate and then, ironically, base decisions on as if they were entities existing in the real world
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entrepreneur
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one who undertakes to organize, manage, and assume the risks of a business
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rationalizations
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what managers use to justify questionable conduct
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Opportunity orientation
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A pattern among successful, growth-minded entrepreneurs to focus on opportunity rather than on resources, structure, or strategy.
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delegating
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having trained people complete tasks for entrepreneurs to help them save time
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PE
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market price of the share / EPS
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EPS
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net profit / number of shares outstanding
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brand
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a name, term, sign, logo, that identifies the products or services of a company and differentiates them from competitors
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contingency
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Entrepreneurship is the right to chose your response. Response to contingency, using contingency as a resource in the entre process
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Salinas & Salinas
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financing for minority groups, slotting fees, role of commercial banker
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ethics
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a set of principles prescribing a behavioral code that explains what is good and right or bad and wrong
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nonrole
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refers to unethical instances in which a person is acting outside of his or her role as manager yet committing acts against a firm
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social obligation
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reacting to social issues through obedience to the laws
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incongruities
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whenever a gap or difference exists between expectations and reality
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probability thinking
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relying on probability to make decisions in the struggle to achieve security
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duplication
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a basic type of innovation that involves the replication of an already existing product, service, or process
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creative process
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the four phases of creative development:background or knowledge accumulation, incubation process, idea experience, and evaluation or implementation
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invention
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a basic type of innovation that involves the creation of a new product, service, or process that is often novel or untried
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social responsibility
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reacting to social by accepting responsibility for various programs
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tolerance for failure
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The iterative, trial-and-error nature of a successful entrepreneur due to serious setbacks and disappointments that are an integral part of the entrepreneur's learning experience
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entrepreneurial behavior
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an entrepreneur's decision to initiate the new-venture formation process.
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entrepreneurship
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a dynamic process of vision, change, and creation. it requires an application of energy and passion toward the creation and implementation of new ideas and creative solutions.
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skunk works
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a highly innovative enterprise that uses groups functioning outside of traditional lines of authority
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better widget strategy
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innovation that encompassesnew or existing markets
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intra-capital
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special capital set aside for the corporate entrepreneur to use whenever investment money is needed for further research ideas
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entrepreneurial economy
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a new emphasis on entrepreneurial thinking that developed in the 1980s and 1990s and is prevalent now in the twenty-first century
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patent
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refers to right granted to anyone who invents or discovers any new and useful process, machine, etc
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creative destruction
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process by which new products and technologies developed by entrepreneurs over time make existing products and technologies obsolete
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social responsiveness
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being proactive on social issues by being associated with various activities for the social group
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incremental innovation
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the systematic evolution of a product or service into newer or larger markets
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entrepreneurial management
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the theme or discipline that suggests entrepreneurship is based on the same principles, whether the entrepreneur is an existing large institutionor an individual starting his or her new venture single-handedly
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franchise agreement components
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- franchise fee -> operating model, training, brand- start-up fee- royalties
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production cycles: long vs short
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relates to the burn rate
EX.
long - medicine
short - hamburger
(Heather Evans)
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slotting fees
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bribes to pay for access and best space
(Salinas & Salinas)
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Joe Himali
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How to make money in real estate
1. sell more expensive houses
2. increase commission (be buyer & seller)
3. leverage other agents (pimps & prostitutes)
4. advertising
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tolerance for ambiguity
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ability of the entrepreneur to thrive on uncertainty and constant changes that introduce ambiguity and stress into every aspect of the enterprise
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micro view of entrepreneurship
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examines the factors specific to entrepreneurship and part of the internal locus of control
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environmental awareness
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a reawakening of the need to preserve and protect our natural resources
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water well strategies
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the ability to gather or harness special resources (land, labor, capital raw materials) over the long term
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legal structure of a business
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liability (personal vs firm), taxes, control
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What a Great Idea
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Chic - scalability & risks involved with a service business dependent on entrepreneur
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left brain
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the part of the brain that helps an individual analyze, verbalize, and use rational approaches to problem solving
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financial risk
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the money or resources risked in a new venture
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drive to achieve
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a strong desire to compete, to excel against self-imposed standards, and to pursue and attain challenging goals
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Bonus: space between stimulus and response
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importance of thinking before you act
>
difference between how you act when thinking and not thinking (i.e. getting slapped at a bar)
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venture opportunity school of thought
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focuses on the search for idea sources, on concept development, and on implementation of venture opportunities
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external locus of control
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a point of view in which external processes are sometimes beyond the control of the individual entrepreneur
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need to know profit because
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- key to survival and growth of business
- convince investors to invest and continue investing
- evaluating employee performance
- selecting future projects
- building credibility in the marketplace
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Where do ideas come from?
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External Sources - 6 sources 1. New Knowledge2. Customers3. Lead Users4. Emphatic Design5. Invention Factors & Skunkworks6. Open Market Innovationleaves out the individual aspect
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