MG354 Study Guide Exam I.txt

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MG354 Study Guide Exam I.txt
2011-02-06 15:55:02
Small Business Management Exam

Small Business Management Exam 1
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  1. Mg 354 Study Guide for Exam I
  2. Entrepreneurial opportunities
    An economically attractive and timely opportunity that creates value for interested buyers or end users.
  3. Small business
    A business that is small compared to large companies in an industry, is geographically localized, is financed by only a few individuals, and has a small management team.
  4. Entrepreneurs
    A person who is relentlessly focused on an opportunity, either in a new or existing business, to create value both for the customer and the owner. The entrepreneur assumes both the risk and reward for his or her effort.
  5. Global business or Globalization
    The expansion of international business, encouraged by converging market preferences, falling trade barriers, and the integration of national economies.
  6. Strategy
    A plan of action that coordinates the resources and commitments of an organization to achieve superior performance.
  7. SWOT
    A type of assessment that provides a concise overview of a firm's strategic situation.
  8. Competitive advantage
    A benefit that exists when a firm has product or service that is seen by its target market as better than those of competitors.
  9. NAFTA (North America Free Trade Agreement)
    Implementation of the North American Free Trade Agreement (NAFTA) began on January 1, 1994. This agreement will remove most barriers to trade and investment among the United States, Canada, and Mexico.
  10. Imports
    Goods produced in another country, being sold in a home country.
  11. Exports
    Goods produced in a home country, being sold in another country.
  12. Business startups advantages
    You get to do it your way
  13. Business startups disadvantages
    The unknown factors
  14. Business buyout advantages
    Already have customers and suppliers
  15. Business buyouts disadvantages
    Inherit equipment and personel you don't necessarily want
  16. Core competency
    Those capabilities that provide a firm with a competitive edge and reflect its personality.
  17. Paradox of attraction
    If you have a good idea others will copy it. A good competitive advantage will attract competition.
  18. Click & Mortar
    Internet based startup.
  19. Brick & Mortar
    The traditional physical store from which businesses have historically operated.
  20. E-commerce strategies
    Types of customers served and Nature of online presence
  21. Business to business model
    A business model based on selling to business customers electronically
  22. Business to consumer model
    A business model based on selling to final customers electronically
  23. Auction site model
    Web-based businesses offering participants the ability to list products for consumer bidding.
  24. Content based model
    A business model in which the website provides access but not the ability to buy or sell products and services.
  25. Information based model
    A business model in which the website provides information about a business, its products and other related matters but doesn't charge for its use.
  26. Transaction based model
    A business model in which the website provides a mechanism for buying and selling products or services.
  27. Emerging models
    Entrepreneurial minds are constantly trying to think up new models
  28. Due diligence
    The exercise of reasonable care in the evaluation of a business opportunity.
  29. Franchises-advantages
    Reduced risk of failure, going into business for yourself but not by yourself, use of a valuable trade name and trademark, access to a proven business system, management training provided by the franchisor, immediate economies of scale, and a way for an existing business to diversify.
  30. Franchises-disadvantages
    Financial issues regarding misleading figures, Competitive issues regarding the franchisor directly competing with the franchisee, and Management issues dealing with the freedom of the franchisee to run the business.
  31. Franchiser
    The party involved in a franchise contract that specifies the methods to be followed and the terms to be met by the other party.
  32. Franchisee
    An entrepreneur whose power is limited by a contractual relationship with a franchising organization.
  33. Sustainable competitive advantage
    A value-creating position that is likely to endure over time.
  34. Buyout valuation options
    Asset-based valuation, market-comparable valuation, and cash flow-based valuation. Look at federal tax returns, state sales tax statements, supplier invoices, and customer receipts.