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Ch. 8 review - Ch. 8 Helpful Terms: Entrepreneurship- The...

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Ch. 8Helpful Terms:Entrepreneurship-The process of creating a business enterprise capable of entering newor established markets by deploying resources and people in a unique way to develop anew organizationEntrepreneur- An individual who creates an enterprise that becomes a new entry to a market Internal Locus of Control- A strong belief in one’s own ability to succeed, so that one accepts responsibility for outcomes and tries harder after making mistakesExternal Locus of Control- A strong belief that luck, fate, or factors beyond one’s con-trol determine one’s progress, causing feelings of helplessness and decreasing intensity ofgoal-seeking efforts in the face of failurePersonal Network- The relationships between an entrepreneur and other parties, includ-ing other entrepreneurs, suppliers, creditors, investors, friends, former colleagues, and othersBusiness Network- A firm’s alliances formed with other businesses to achieve mutually beneficial goalsDebt Financing- A means of obtaining financial resources that involves obtaining a com-mercial loan and setting up a plan to repay the principal and interest Bankruptcy- A legal procedure that distributes company assets to creditors and protects the debtor from unfair demands of creditors when the debtor fails to make scheduled loanrepaymentsEquity Financing- A means of obtaining financial resources that involves the sale of partof ownership of the business to investors Venture Capitalists- Financial investors who specialize in making loans to entrepreneur-ship that have the potential for rapid growth but are in high-risk situations with few assetsand would therefore not quality for commercial bank loansPublic Offerings- A means of raising capital by the sale of securities in public markets such as the New York Stock Exchange and NASDAQIntrapreneurship- A form of business organization in which new business units are de-veloped within a larger corporate structure in order to deploy the firm’s resources to mar-ket a new product or service; also called corporate entrepreneurship Spin-Off- An independent entrepreneurship that produces a product or service that origi-nated in a large companyConcepts:Compare and contrast different legal forms of businesses (proprietorship, partnership, &corporation) p.239-241Proprietorship- a form of business that is owned by one person easy to form and require minimum paperwork
owner keeps all profits and makes all important decisions without having to get the approval of co-ownerslimited to one person which restricts the owner from obtaining more than limited amounts of capital and creditsole owner has unlimited liability, personal assets of owner may be at stake in a lawsuit Partnership- a form of business that is an association of two or more persons acting as co-owners of a business 

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Term
Spring
Professor
Staff
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Business, Entrepreneurship, partner, different legal forms

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