Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Mana 3325 test 2 voc
vocab covering ch 5-8 entrepreneurship successfully launching new ventures 4e
| Definition | Term |
|---|---|
| Business research that focuses on the potential of an industry | industry analysis |
| A group of firms producing a similar product or service, such as airlines, fitness drinks, or electronic games | industry |
| A detailed evaluation of a firm's direct, indirect, and future competitors | competitor analysis |
| How the entire company is situated relative to its competitors | position |
| Conditions that create disincentives for a new firm to enter an industry | barriers to entry |
| A phenomenon that occurs when mass producing a product results in lower average costs. | economies of scale |
| A new industry In which standard operating procedures have yet to be developed | emerging industry |
| A sometimes significant advantage, created by the opportunity to establish brand recognition and/ or market power, gained by the first company to produce a product or service or the first company to move into a market | first-mover advantage |
| An industry characterized by a large number of firms approximately equal in size | fragmented industry |
| When one firm starts acquiring similar firms that are located in different geographic areas | geographic roll-up strategy |
| An industry that is experiencing slow or no increase in demand, has numerous (rather than new) customers, and has limited product innovation | mature 'industry |
| An industry that Is experiencing a reduction in demand | declining industry |
| A competitive strategy in which the firm tries to become the dominant player in the industry | leadership strategy |
| A marketing strategy that focuses on a narrow segment of the industry | niche strategy |
| A marketing strategy that Is accomplished through achieving lower costs than industry incumbents through process improvements | cost reduction strategy |
| An industry that is experiencing significant international sales | global industry |
| An international expansion strategy in which firms compete for market share on a country by country basis and vary their product or services offerings to meet the demands of the local market | multidomestic strategy |
| An international expansion strategy in which firms compete for market share by using the same basic approach in all foreign markets | global strategy |
| The information that is gathered by a firm to learn about its competitors | competitive intelligence |
| A tool for organizing the information a firm collects about its competitors to see how it stacks up against its competitors, provide ideas for markets to pursue, and identify its primary sources of competitive advantage | competitive analysis grid |
| A company's plan for how it competes, uses its resources, structures its relationships, interfaces with customers, and creates value to sustain itself on the basis of the profits it generates | business model |
| Initiative that revolutionizes how products are sold in an industry | business model innovation |
| The string of activities that moves a product from the raw material stage, through manufacturing and distribution, and ultimately to the end user | value chain |
| The overall manner in which a firm competes relative to its rivals. | core strategy |
| A statement that describes why a firm exists and what its business model is supposed to accomplish | mission statement |
| An overly narrow focus that prevents a firm from seeing an opportunity that might fit its business model | business concept blind spot |
| A range that defines the products and markets on which a firm will concentrate | product/market scope |
| Generic strategy In which firms strive to have the lowest costs in the industry relative to competitors' costs and typically attract customers on the basis of price | cost leadership strategy |
| A strategy that firms use to provide unique or different products to customers | differentiation strategy |
| A unique skill or capability that transcends products or markets, makes a significant contribution to the customer's perceived benefit, is difficult to imitate, and serves as a source of a firm's competitive advantage over its rivals | core competency |
| The process of adapting a company's core competencies to exploit new opportunities | resource leverage |
| Anything rare and valuable that a firm owns, including plant and equipment, location. brands, patents. customer data. a highly qualified staff. and distinctive partnerships | strategic assets |
| A competitive advantage that is sustainable normally as the result of the unique combination of a firm's core competencies and strategic assets | sustainable competitive advantage |
| A company or vendor that provides parts or services to another company | supplier |
| A network of all the companies that participate In the production of a firm's a product, from the acquisition of raw materials to the final sale | supply chain |
| The coordination of the flow of all information, money. and material that moves through a product's supply chain | supply chain management |
| An approach that takes place when a service provider comes inside a partner's facilities and helps the partner design and manage its supply chain | insourcing |
| The way in which a firm interacts with its customers | customer interface |
| The limited group of individuals or businesses that a firm goes after or tries to appeal to at a certain point in time | target market |
| The way a firm's product or service "goes to market" or how it reaches its customers; also, the channels a company uses and the level of customer support it provides | fulfillment and support |
| A formal statement of an organization's values on certain ethical and social issues | code of conduct |
| Programs designed to teach employees how to respond to the types of ethical dilemmas that might arise on their jobs. | ethics training programs |
| A situation that involves doing something that is beneficial to oneself or the organization, but may be unethical | ethical dilemma |
| A written document that deals with issues such as the relative split of the equity among the founders of a firm, how individual founders will be compensated for the cash or the "sweat equity" they put into the firm, and how long the founders will have to | founders' agreement |
| A clause found in most founders' agreements that legally obligates the departing founder to sell to the remaining founders his or her interest in the firm if the remaining founders are interested | buyback clause |
| A promise made by an employee or another party (such as a supplier) to not disclose a company's trade secrets | nondisclosure agreement |
| An agreement that prevents an individual from competing against a former employer for a specific period of time | noncompete agreement |
| A process in which an impartial third party (usually a professional mediator) helps those involved in a dispute reach an agreement | mediation |
| A legal authorization to operate a business in a city, county, or state | business license |
| A tax identification number; is used when filing various tax returns. | employer identification number (EIN) |
| A permit that's required for businesses that plan to use a fictitious name, which is any name other than the business owner's name (also called dba or doing business as). | fictitious business name permit |
| The simplest form of business organization involving one person. in which the owner maintains complete control over the business and business losses can be deducted against the owner's personal tax return | sole proprietorship |
| The ability to sell a business or other asset quickly at a price that is close to its market value; also, a company's ability to meet its short-term financial obligations | liquidity |
| A form of business organization in which two or more people pool their skills, abilities, and resources to run a business | general partnership |
| A document that details the responsibility and the ownership shares of the partners involved with an organization | partnership agreement |
| A form of a general partnership that includes two classes of owners: general & limited The general partners are liable for the debts and obligations of the partnership, but the _______ are liable only up to the amount of their investment. | limited partnership |
| Sets forth the rights and duties of the general and limited partners, along with the details of how the partnership will be managed and eventually dissolved | limited partnership agreement |
| A separate legal entity organized under the authority of a state | corporation. |
| A legal entity that in the eyes of the law is separate from its owners | C corporation |
| Owners of a corporation who are shielded from personal liability for the debts and obligations of the corporation | shareholders |
| Stock that is typically issued to conservative investors, who have preferential rights over common stockholders in regard to dividends and to the assets of the corporation in the event of liquidation. | preferred stock |
| Stock that is issued more broadly than preferred stock and that gives the stockholders voting rights to elect the firm's board of directors | common stock |
| Documents forming a legal corporation that are filed with the secretary of state's office in the state of incorporation | articles of incorporation |
| occurs if the owners of a corp. don't file tax payments, neglect to pay their annual fees, or commit fraud, the courts ignore the fact that a corp. has been established, and owners held liable for actions for the corp. | piercing the corporate veil |
| Form of taxation in which a corporation is taxed on its net income. When the same income is distributed to shareholders in the form of dividends, it is taxed again on shareholders' personal income tax returns | double taxation |
| A corporation that is listed on a major stock exchange, such as the New York Stock Exchange or the NASDAQ, in which owners can sell their shares at almost a moment's notice | public corporation |
| A market in which stock can be bought and sold fairly easily through an organized exchange | liquid market |
| A corporation in which the voting stock is held by a small number of individuals and is very thinly or infrequently traded | closely held corporation |
| A corporation in which all of the shares are held by a few shareholders, such as management or family members, and the stock is not publicly traded | private corporation |
| Describes stock in both closely held and private corporations, meaning that it typically isn't easy to find a buyer for the stock | illiquid |
| Special form of incentive compensation providing employees the option or right to buy a certain number of shares of their company's stock at a stated price over a certain period of time | stock options |
| combines the advantages of a partnership and C corp. similar to a partnership, profits and losses are not subject to double taxation. and similar to a corp. the owners are not subject to personal liability for the behavior of the business | subchapter S corporation |
| A form of business organization that combines the limited liability advantage of the corporation with the tax advantages of the partnership | limited liability company (LLC). |
| The process of raising money and managing a company's finances in a way that achieves the highest rate of return. | financial management |
| The ability to earn a profit | profitability |
| A company's merchandise, raw materials, and products waiting to be sold | inventory |
| The ability to sell a business or other asset quickly at a price that is close to its market value; also, a company's ability to meet its short-term financial obligations | liquidity |
| The money owed to a firm by its customers | accounts receivable |
| How productively a firm utilizes its assets relative to its rate of return | efficiency |
| The strength and vigor of the firm's overall financial posture. | stability |
| A ratio calculated by dividing the firm's long-term debt by its shareholders' equity | debt-to-equity ratio |
| Written reports that quantitatively describe a firm's financial health | financial statements |
| Estimates of a firm's future income and expenses, based on its past performance, its current circumstances, and its future plans | forecasts |
| Itemized forecasts of a company's income, expenses, and capital needs that are also important tools for financial planning and control | budgets |
| Ratios showing the relationships between items on a firm's financial statements that are used to discern whether a firm is meeting its financial objectives and how it stacks up against industry peers | financial ratios |
| Reflect past performance and are usually prepared on a quarterly and annual basis | historical financial statements |
| A report that is similar to the annual report, except that it contains more detailed information about the company's business | 10-K |
| Projections for future periods, based on a firm's forecasts, and typically completed for two to three years in the future | pro forma financial statements |
| A financial statement that reflects the results of the operations of a firm over a specified period of time: prepared on a monthly, quarterly, or annual basis. | income statement |
| Total sales minus allowances for returned goods and discounts | net sales |
| All of the direct costs associated with producing or delivering a product or service, including the material costs and direct labor costs (also cost of goods sold). | cost of sales |
| The materials and direct labor needed to produce firm's revenue. | cost of goods sold |
| Marketing, administrative costs, and other expenses not directly related to producing a product or service | operating expenses |
| A measure of a firm's return on sales that is computed by dividing net income by average net sales | profit margin |
| A simple ratio that measures the price of a company's stock against its earnings | price/earnings (P/E) ratio |
| A snapshot of a company's assets, liabilities, and owner's equity at a specific point In time | balance sheet |
| Cash plus items that are readily convertible to cash, such as accounts receivable, Inventories, and marketable securities | current assets |
| Assets used over a longer time frame, such as real estate, buildings, equipment, and furniture | fixed assets |
| Miscellaneous assets including accumulated goodwill | other assets |
| Obligations that are payable within a year, including accounts payable, accrued expenses, and the current portion of long-term debt | current liabilities |
| Notes or loans that are repayable beyond one year, including liabilities associated with purchasing real estate, buildings, and equipment | long~term liabilities |
| The equity invested in the business by its owner(s) plus the accumulated earnings retained by the business after paying dividends | owner's equity |
| A firm's current assets minus its current liabilities | working capital |
| A ratio that equals the firm's current assets divided by its current liabilities | current ratio |
| A financial statement summarizing the changes In a firm's cash for a specified period and detailing the changes , show how much cash Is on hand at the end of the month as well as how the cash was acquired and spent during the month | statement of cash flows |
| Activities that affect net income (or loss), depreciation, and changes in current assets and current liabilities other than cash and short-term debt | operating activities |
| Activities that include the purchase, sale, or investment in fixed assets, such as real estate and buildings | investing activities |
| Activities that raise cash during a certain period by borrowing money or selling stock, and/ or use cash during a certain period by paying dividends, buying back outstanding stock, or buying back outstanding bonds | financing activities |
| Estimates of a firm's future income and expenses, based on its past performance, its current circumstances, and its future plans | forecasts |
| An explanation in a new firm's business plan of the sources of the numbers for its financial forecast and the assumptions used to generate them | assumptions sheet |
| A projection of a firm's sales for a specified period (such as a year); most firms though forecast their sales for two to five years into the future. | sales forecast |
| A statistical technique used to find relationships between variables for the purpose of predicting future values | regression analysis |
| A method for expressing each expense item as a percent of sales | percent of sales method |
| A forecasting approach using the percent of sales method in which expense items on a firm's income statement are expected to grow at the same rate as sales | constant ratio method of forecasting |
| . Financial statements that show a projected snapshot of a company's assets, liabilities, and owner's equity at a specific point in time | pro forma balance sheet |
| The point where total revenue received equals total costs associated with the output | break-even point |
| A financial statement that shows the projected results of the operations of a firm over a specific period | pro forma income statement |
| A financial statement that shows the projected flow of cash into and out of a company for a specific period | pro forma statement of cash flows |
Created by:
romoore245
Popular Management sets