EN400 Test

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Author:
slittle4
ID:
113273
Filename:
EN400 Test
Updated:
2011-10-30 22:49:46
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entrepreneurship
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Description:
entrepreneurship
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  1. Components of a successful entrepreneurial venture (6)
    • Business plan
    • The entrepreneur
    • Opportunity
    • Organization
    • Resources
    • Strategy
  2. Why do people start businesses? (6)
    • to seize an opportunity
    • to achieve a sense of personal
    • accomplishment
    • dreamed of running their own business
    • a chance to use their
    • experience/skills
    • to be their own boss
    • economic necessity (to make a living)
  3. Why don't people start businesses? (7)
    • risk
    • uncertainty
    • insecurity
    • lack of capital
    • lack of initiative
    • lack of knowledge
    • lack of skills/abilities
  4. Why is entrepreneurship important to the economy? (5)
    • Create new product and/or service businesses
    • Bring creative and innovative methods to developing or producing new products or services
    • Provide employment opportunities and create new jobs as a result of growing their businesses consistently and rapidly
    • Help contribute to regional and national economic growth
    • Encourage greater industrial efficiency/productivity to enhance our international competitiveness
  5. Why small businesses fail (8)
    • poor cash flow management
    • absence of adequate performance monitoring
    • poor debt management
    • over borrowing
    • failure to innovate
    • poor inventory management
    • poor communications
    • poor market research
  6. Common attributes of entrepreneurs (10)
    • independence
    • persistence and determination
    • self confidence
    • creativity
    • organized and goal-oriented
    • visionary
    • risk-taking and tolerance for failure
    • perserverance and hard work
    • commitment
    • honesty and honour
  7. Importance of being socially responsible (4)
    • cost savings due to more efficient operations
    • development of a more positive organizational image and reputation
    • creation of a clearly identifiable market niche w/ customers who are interested in health and the environment
    • being forced to become more innovative to accommodate these values within the company's organizational strategy
  8. What percentage of Canadians have enterprising aspirations?
    2/3
  9. How many businesses are there in Canada?
    2.3 million
  10. What percentage of those businesses are classified as "small"?
    98%
  11. Approximately how many new businesses start-up each year in Canada?
    130,000
  12. outline for a code of ethics (6)
    • honesty
    • integrity
    • respect
    • trust
    • responsibility
    • citizenship
  13. Entrrepreneurial Attitude Orientation (EAO) (4)
    • Achievement
    • Innovation
    • Personal Control
    • Self-Esteem
  14. Entrepreneurial DNA (3)
    • Skills
    • Attitudes & Behaviours
    • Knowledge
  15. Entrepreneurial DNA - Skills (6)
    • communication
    • interpersonal
    • problem-solving
    • decision making
    • creativity
    • business skills
  16. Entrepreneurial DNA - Knowledge (3)
    • the market(s)
    • the business
    • the business start-up process
  17. Where do entrepreneurs get their ideas for new ventures? (8)
    • prior business experience
    • business associates
    • saw a similar business elsewhere
    • suggestion by friends or relatives
    • hobby/personal interest
    • it just came to mind
    • magazine/newspaper
    • radio/television
  18. Ideas and concepts for the future (7)
    • maintaining "wellness"
    • personal indulgence
    • home health service and eldercare
    • pet care and pampering
    • retail boutiques
    • personal services of all types
    • e-business
  19. Characteristics of the "ideal" business (10)
    • requires no investment
    • has a recognized, measurable market
    • a perceived need for the product or service
    • no government regulation
    • requires no labour force
    • provides 100% gross margin
    • no competition
    • customers pay in advance
    • no risk of product liability
    • buyers purchase frequently
  20. Advantages of buying a business (8)
    • reduced risk
    • "going concern" increases the likelihood of a successful business for new owner
    • proven location for successful operation
    • product or service that is presently being produced, distributed, and sold
    • established clientele
    • financial relationships are already established and its limitations and capabilities are known in advance
    • can often be acquired at a good price
  21. Disadvantages of buying a business (8)
    • facilities and product line may be old and obsolete
    • union/management relationships may be poor
    • present personel may be unproductive and have a poor track record
    • inventory may contain a large amount of "dead" stock
    • a high percentage of the assets may be in poor-quality accounts receivables
    • the location may be bad
    • financial condtion of the business, and its relationships with financial institutions may be poor
    • inherit any ill will that may exist toward the established firm among cutomers or suppliers
  22. How to find a business to buy? (5)
    • current job contacts
    • local newspapers and trade associations
    • business brokers and comercial real estate agents
    • confidential advisors
    • your personal network
  23. Factors to consider when buying a business? (8)
    • why is the business for sale?
    • the trend in profits
    • ratio analysis
    • value of tangible assets
    • value of intangible assets
    • cash flow
    • marketing considerations
    • human factors
  24. current ratio
    current assets/current liabilities
  25. quick ratio
    current assets - inventories/current liabilities
  26. debt to net worth
    total outstanding current and long-term debt/net worth
  27. gross profit to sales
    gross profit/net sales
  28. net profit to sales
    net profit/net sales
  29. return on assets
    net profit/total assets
  30. sales to inventory
    net sales/(beginning inventory + ending inventory)/2
  31. collection period
    acconts receivable/net sales/365
  32. Characteristics of a business system (6)
    • task-based system
    • mission: to produce goods/services profitably
    • competency prevails
    • acceptance is based on performance
    • relationships are tempoary and contractual
    • power: based on authority and influence
  33. Characteristics of a family system (6)
    • emotion-based system
    • mision: to nurture offspring into competent adults
    • equality rules
    • acceptance is unconditional
    • relationships are permanent
    • power: based on generational stage/birth order
  34. Planning a successful transition (3)
    • understanding the context for the transition
    • identifying the qualities needed in a successor
    • implementing the sucession plan
  35. franchises contain the following elements: (4)
    • a continuing relationship between two parties
    • a legal contract that describes the responsibilities and obligations of each party
    • tangible and intangible assets provided by the franchisor for a fee
    • the operation of the business by the franchisee under the franchisor's trade name and managerial guidance
  36. Advantages of franchising (7)
    • well-known trademrk or trade name
    • assistance in such areas as site selection, equipment purchasing, national advertising, bookkeeping, the acquisition of supplies and materials, business counsseling and employee training
    • reduced risk of failure
    • may be able to take advantage of large-scale, centralized buying
    • may have access to special financing and credit arrangements
    • the opportunity to acquire a proven system that has already been developed, tested and refined
    • potential opportunity to purchase additional units
  37. the dealer is to some degree, but not entirely, identified with the manufacturer/supplier
    product distribution
  38. arrangements there is complete identification of the dealer with the supplier
    entire-business-format franchising
  39. Disadvantages of franchising (6)
    • the high degree of control which franchisors exercise over their franchises
    • contractually required to report regularly to the franchisor and subject to frequent inspection and constant supervision
    • the cost of the services provided you by the franchisor is based on your total sales revenue, not your profitability
    • franchisor may add a mark-up to the supplies and equipment you are required to buy from them
    • must pay the franchisor an initial franchise fee as well as periodic royalty payments
    • termination policies of many franchisors give franchisees little or no security
  40. Where can you find franchises for sale? (3)
    • Canadian franchise association
    • Canadian franchise directory
    • Franchise show
  41. Key points to consider in buying a franchise (7)
    • history of operations
    • successful locations
    • value of franchise name
    • support
    • geographic area protection
    • franchise fees & royalties
    • franchise agreement details
  42. Components of franchise agreements (10)
    • full initial costs and what they cover
    • licensing fees
    • land purchase or lease requirements
    • building construction or renovation requirements
    • equipment needs
    • initial training provided
    • starting inventory requirements
    • promotional fees or allowances
    • royalties payable
    • insurance requirements
  43. entry paths to business ownership (3)
    • start a business
    • buy an existing business
    • purchase a franchise
  44. Advantages of starting your own business (3)
    • freedom of choice - name, location, resources, positioning & strategy, structure
    • potentially lowest cost approach
    • easier to start
  45. Disadvantages of starting your own business (5)
    • higher risk of failure
    • more difficult to get financing
    • more challenging to locate resources
    • more challenging to establish brand image
    • more challenging to establish customer base
  46. Legal forms of Organization (3)
    • sole-proprietorship
    • partnership - general & limited
    • corporation - public & private
  47. Advantages of sole proprietorship (4)
    • simple and inexpensive to start
    • individual control over operations
    • all profit to the owner
    • losses deductible from any other income
  48. Disadvantages of sole proprietorship (3)
    • unlimited liability
    • more difficult to obtain financing
    • limited resources and opportunity
  49. Advantages of partnership (4)
    • pooling of financial resources and talents
    • simplicity and ease of organization
    • increased ability to obtain capital
    • potential for growth
  50. Disadvantages of partnership (2)
    • unlimited liability
    • divided authority
  51. Advantage of limited partnership
    limited liability for limited partners
  52. Disadvantages of limited partnership (2)
    • centralized management
    • difficulty in changing ownership
  53. Advantages of corporation (5)
    • limited liability
    • continuity of the business
    • easier to raise capital
    • potential employee benefits
    • tax advantages
  54. Disadvantages of corporation (4)
    • cost
    • legal formalities
    • inability to flow losses through to the shareholders
    • need for personal guarantees
  55. Municipal legal requirements (3)
    • zoning
    • permits & licensing
    • signage
  56. Provincial legal requirements (8)
    • business registration
    • employment standards act
    • human rights code
    • WSIB
    • health & safety legislation
    • liquor permits
    • consumer legislation
    • AODA
  57. Federal legal requirements (3)
    • CRA - income tax, hst, cpp, ei
    • competition act
    • personal information protection and electronic documents act
  58. Types of insurance (10)
    • general liability insurance
    • business premises insurance
    • business use vehicle insurance
    • business interuption or loss-of-income insurance
    • disability or accident and sickness insurance
    • key person insurance
    • credit insurance
    • surety and fidelity bonds
    • partnership insurance
    • workers' compensation

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