Entrepreneurship I

3.0 Vocabulary

  1. Advertising
/ A paid form of communication sent out by a business about a product or service.
  1. Behavioral (Segmentation)
/ Dividing a market on the basis of consumers’ response to a product (Product Benefit, Occasion response, Loyalty)
  1. Brand
/ The name, symbol, or design used to identify a product.
  1. Business Law
/ A body of law that governs every aspect with regards to conducting a business.
  1. C Corporation
/ The most common form of corporation. It protects the entrepreneur from being personally sued for the actions and debts of the corporation
  1. Capital
/ Financial assets or the financial value of assets, such as cash. Also considered the factories, machinery and equipment owned by a business and used in production.
  1. Channel of Distribution
/ The path a product takes from producer or manufacturer to final user or consumer.
  1. Chapter 11
/ A section of the Bankruptcy Code that provides for the reorganization of an insolvent corporation under court supervision and can establish a schedule for the payment of debts and, in some cases, a new corporation that can continue to do business.
  1. Chapter 12
/ A U.S. bankruptcy proceeding specifically for family farms or fisheries that gives the farm or fishery owner the ability to reorganize his or her finances and debts while still keeping the farm or fishery.
  1. Chapter 13
/ A U.S. bankruptcy proceeding in which the debtor undertakes a reorganization of his or her finances under the supervision and approval of the courts.
  1. Chapter 7
/ The statute regarding liquidation proceedings that empowers a court to appoint a trustee to operate a failing business to prevent further loss.
  1. Competition
/ The rivalry between companies selling similar products and services with the goal of achieving revenue, profit, and market-share growth.
  1. Competitive Analysis
/ Section of the business plan should demonstrate that the proposed business has an advantage over its competitors.
  1. Contract
/ A legal agreement negotiated between two persons that creates an obligation to perform (or not perform) a particular duty.
  1. Copyrights
/ Protects the expression of an idea but not the underlying idea itself, (composers, artists, photographers.)
  1. Corporation
/ A business that is chartered, or registered by a state.
  1. Customer Profile
/ A description of the characteristics of the person or company that is likely to purchase a product or service.
  1. Customers
/ The people who buy the products and services companies offer.
  1. Demographic
/ The physical and social characteristics of the population.
  1. Direct Competition
/ Competition from a business that makes most of its money selling the same or similar products or services as another business.
  1. Economic Need
/ Anything that is required to live.
  1. Economic Want
/ An unfilled desire of a customer.
  1. General Partnership
/ An arrangement by which partners conducting a business jointly have unlimited liability, which means their personal assets are liable to the partnership's obligations.
  1. Geographic (Segmentation)
/ The division of the market on the basis of where customers are located (Type of climate, Continents,
Nations, Regions, States, Zip codes, Neighborhoods
Etc.)
  1. Gross Domestic Product (GDP)
/ The monetary value of all the finished goods and services produced within a country's borders in a specific time period (GDP is usually calculated on an annual basis.)
  1. Indirect Competition
/ Competition from a business that makes only a small amount of money selling the same or similar products or services as another business.
  1. Intellectual Property
/ Refers to creations of the mind. (Examples of intellectual property include music, literature, and other artistic works; discoveries and inventions; and words, phrases, symbols, and designs.)
  1. Interest Rates
/ The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.
  1. Label
/ The part of the package used to present information about the product.
  1. Limited Liability
/ A form of business ownership that provides limited liability and tax advantages.
  1. Liquidate
/ To reduce (accounts) to order; determine the amount of (indebtedness or damages).
  1. Market Analysis
/ Section of the business plan presents your research on the customer profile gathered from primary and secondary marketing research resources.
  1. Market Research
/ A system for collecting, recording, and analyzing information about customers, competitors, goods, and services.
  1. Market Segmentation
/ The division of a total market into smaller, more specific groups as a way to meet the customers needs.
  1. Marketing Concept
/ Uses the needs of customers as the primary focus during the planning, production, distribution, and promotion of a product or service.
  1. Marketing Mix
/ A combination of the four elements of marketing – product, price, place, promotion.
  1. Marketing Plan
/ A plan used by a business to guide its marketing process to a desired conclusion based on information obtained through market research and target market decisions.
  1. Mass Marketing
/ Designing products and directing marketing activities to appeal to the whole market.
  1. Mission Statement
/ A declaration of the specific aspirations of a company, the major goals for which it will strive.
  1. Negligence
/ Failure to take proper care in doing something.
  1. Niche Market
/ A demand for a very specialized product or commodity.
  1. Nonprofit Corporation
/ Legal entities that make money for reasons other than the owner’s profit.
  1. Package
/ The physical container or wrapper used to present information.
  1. Partnership
/ A form of business ownership in which two or more people share the assets, liabilities, and profits.
  1. Patent
/ A government license that gives the holder exclusive rights to a process, design or new invention for a designated period of time.
  1. Place
/ Getting a product in the right place at the right time is all about creating convenience for the customer.
  1. Price
/ The amount of money a firm asks in exchange for its products.
  1. Primary Data
/ Information collected for the very first time to fit a specific purpose. (Questionnaire or survey, Observation, Focus groups)
  1. Product
/ The goods, services, or ideas a business will offer its customers.
  1. Product Mix
/ All the products a company makes or sells.
  1. Promotion
/ Refers to the various types of communication that marketers use to inform, persuade, or remind customers about their products.
  • Advertising
  • Personal selling
  • Publicity
  • Public relations
  • Sales promotion

  1. Psychographics
/ Personality, opinions, and lifestyle elements, including activities and interests.
  1. Public Relations
/ The act of establishing a favorable relationship with customers and the general public.
  1. S Corporation
/ A corporation organized under subchapter S of the Internal Revenue Code whose income is taxed as a partnership.
  1. Secondary Data
/ Data found in already published sources. (Government Issued Publications, Specialized Magazines & Journals, News Paper Articles, Statistics, etc)
  1. Sole Proprietorship
/ A business that is owned exclusively by one person.
  1. Strategy
/ A plan of action for achieving your goals and objectives.
  1. Subchapter S Corporation
/ A corporation that is taxed like a sole proprietorship or partnership.
  1. SWOT Analysis
/ Strengths, Weaknesses, Opportunities, and Threats
(specific analysis of your own business)
  1. Tactics
/ The specific actions that a business uses to carry out its marketing strategies.
  1. Target Customers
/ People most likely to buy a business’s products and services.
  1. Target Market
/ A particular group of consumers at which a product or service is aimed.
  1. Trade Mark
/ A distinctive mark, symbol, or slogan or any combination of these used by a business to identify goods and to distinguish them from products sold by others.