Unit 4 CPAS

Entrepreneur

A person who organizes manages, and takes on the risks of a business, typically they create their own products.

small business owner

An individual who assumes the risks and receives the personal and financial awards for the business but does not necessarily create their own products.

angel investor

Someone who provides start-up money to a new business

network

To connect with individuals who might help accomplish personal, career, and professional goals

professional development

Steps that an individual takes to enhance or improve skills or traits that are needed to excel in his/her career/profession

self-aware

Conscious of one's own strengths, weaknesses, and emotions

small business

A business that employs 500 or fewer people

trend

The general direction in which people or events are moving

Cash Flow Statement

A financial summary estimating when, where, and how much money will flow into and out of business during a specific period of time

Marketing Plan

A set of procedures or strategies for attracting the target customer to a business.

Royalties

A percentage of actual sales that a licensee pays to a licensor; usually anywhere from 5 to 15 percent.

Venture

A business or business project, usually new.

Executive Summary

a brief overview of the entire marketing plan

Business Sustainability

The successful long-term management of an organization's financial, social, and environmental risks, opportunities, and obligations

Financial Plan

The part of a company's that shows how the business has performed (or is likely to perform) financially; how a business intends to use its money

Business Plan

A company's blueprint for success; shows how the business works now and how it is intended to work in the future; the written business model

Income Statement

A financial summary that shows how much money the business has made or has lost over a period of time; also called the profit-and-loss statement

Market Analysis

A systematic study of the market

Market Position

The rank of a particular business in a specific market

Mission statement

A brief summary of what a business owner wants a business to be doing

table of contents

The portion of a document in which the sections are listed with their page numbers for easy access

Target market

The particular group of customers a business seeks to attract

Product

The good, service, or idea a business offers its customers

Balance Sheet

A financial statement that captures the financial condition of the business at that particular moment

Appendix

A segment added to the end of a document; includes supporting information

Barrier to (market) entry

Anything that blocks the way or makes it more difficult to enter a particular market

equity

Assets minus liabilities; also known as stockholders' (or shareholders') equity, book value, and net worth

Human resources

People who work to produce goods and services

Management

The process of accomplishing the goals of an organization through the effective use of people and other resources.

venture capitalists

Individuals or companies that invest in new businesses in exchange for partial ownership of those businesses.

Types of debt used for investing

bank loans, credit cards, personal loans, micro-loans

friends, family, and fools

people who believe in you and your ideas the most and are willing to loan money without much if any requirements

government grants

Finance provided by the government (or government-supported agencies) to support specific industries, regions or projects. Unlike a loan, most grants don't have to be paid back (provided that the grant criteria are met).

foundation grants

funds established usually by prominent families or corporations for philanthropy

Corporate Grants

many large companies provide grants for specific topics such as technology, science, math, and reading.

Crowdfunding

raising money for a project or venture by obtaining many small amounts of money from many people online or via social networking

Assests

Anything of value that a business or individual owns

board of directors

a group of persons elected by the stockholders to manage a corporation

business format franchise

A franchise arrangement in which the franchisee must operate under the trade name of the parent company that provides continuous assistance in setting up and operating the business

C Corporation

The most common type of corporation, which is a legal business entity that offers limited liability to all of its owners, who are called stockholders

commission

A percentage of the total sale amount paid to the individual or business that makes the sale

dividend

a sum of money paid regularly (typically quarterly) by a company to its shareholders out of its profits (or reserves).

Franchise

a contractual agreement to use the name and sell the products or services of a company in a designated geographic area

General Partnership

partnership in which partners share equally in both responsibility and liability

Hybrid structure

A form of business ownership that combines elements of corporations and either sole proprietorships or partnerships

joint venture

An arrangement that involves two or more businesses entering into a relationship by combining complementary resources such as technology, skills, capital, or distribution channels, for the benefit of all parties; the relationship is usually short-term or for a single project/transaction

Licensing

A business structure that requires the authorization or permission from an owner to another entity to use trademarked, copyrighted (e.g., logo, name), or patented material for a specific activity, during a specific time period, for the profit of both parties

limited liability

Restricted chance of loss; a condition in which business owners risk only the amount of their investment

Limited Liability Company

a form of business ownership that offers both limited liability to its owners and flexible tax treatment

limited liability partnership

A form of business ownership that is generally used by business professionals for the purpose of protecting innocent partners from the malpractice of the other partners

multilevel marketing (MLM)

A business structure that pays commission on sales earned by people at two or more levels; the sales representatives usually work independent of the company; the representatives not only sell products but try to get others to sell them

Piggy back franchise

A form of ownership in which a retail franchise operates within the facilities of another store; often referred to as the host

Product trade-name franchise

A franchise arrangement based on an independent sales relationship between a franchisor and franchisee to stock and sell a specific line of goods; also known as dealership or exclusive distributorship

S corporation

A type of corporation that is limited to 100 or fewer shareholders, has limited shareholder liability, and requires little financial reporting; taxed as a partnership;

Sole Proprietorship

A business owned by one person