MIDTERMS

• search questions


  When questions are used to draw out specific answers
• IDEA PROMPTING


  Encounters with someone else's idea, or a customer request, or some other event may provide hints or cues leading to business ideas.
• Profit


  result of finacial feasibility of business ideas.
• Projected Income Statement


  financial record summarizing a firm's planned or expected financial performance in terms of revenues, expenses, and profits over a given time period.
• Projected Balance Sheet


  shows planned or expected financial position of enterprise on a particular date.
• Projected Cash Flow Statement


  shows planned or expected cash sale and/or purchase.
• open communication.


  The free-flowing exchange of ideas between the members of an organization
• Creativity


  refers to activities involved in finding solutions to problems that hinder the achievement of the firm's objectives.
• Strategic planning


  refers to the process of determining the primary objectives of the entrepreneurship and then adopting courses of action and allocating resources to achieve those objectives.
• The Mission Statement


  This term refers to the basic description of the fundamental nature, rationale, and direction of the firm.
• Strategic Objectives


  This term refers to specific performance targets that the entrepreneurship hopes to accomplish.
• SWOT analysis


  is an organized method of assessing a firm's strengths and weaknesses and the opportunities and threats in the external environment that confront or will confront the firm.
• The firm's strength


  refers to a skill, a competence, a valuable organizational resource or competitive capability, or an achievement that gives the firm a market
• The firm's weakness


  refers to something a company lacks or does poorly (compared with others) or a condition that puts it at a disadvantage.
• Opportunity


  refers to the chance offered by the external environment to improve the firm's situation significantly.
• Threats


  refer to a challenge posed by an unfavorable trend or development in the external environment that would lead to, in the absence of purposeful entrepreneurial action, the erosion of the entrepreneurship's position.
• Forecasts are supplementary tools for SWOT analysis. It is an estimate or prediction of the future sales or income of the firm. Forecasts may be short-term (one year or less), medium-term (one to five years), long-term (over five years).
• Sales forecasts are often determined through a combination of statistical and intuitive forecasts tempered by the experience of the entrepreneur.
• Tactics


  are more detailed and they are used to determine how the specific task can best be accomplished on time with available resources.
• Business Plan


  A document that helps the small business owner determine what resources are needed to achieve the objectives of the firm and provides a standard against which to evaluate results.
• The name of the business


  this helps your customers find, identify, and connect with your business
• Name of the proponents


  this rightfully credits the individual or organization that has overall control and responsibility for the project
• Address


  It indicates the whereabouts of your plan;
• Telephone number


  This provides a direct line to your company; allows you to communicate with customers or investors.
• E-mail and website address


  Allows the company to receive or send electronic data
• Date


  This notes when did the plan start
• The name of the person who prepared the plan

  provides basic information about the person; allows the customers and investors to contact the person who prepared the plan
• Executive summary


  It is a portion of the business plan that summarizes the plan and states the objectives of the business
• Positioning


  refers to how the firm differentiates its product or service from those of the competitors and serving a niche.
• Pricing Strategy


  refers to how the firm prices its products or service is a very important component of the business plan.
• Cost plus pricing


  covers all cost, variable and fixed, plus an extra increment to deliver profit.
• Demand pricing


  is a method of pricing where the firm sets prices based on buyers desires. The range acceptable to the target market is determined
• Competitive pricing


  calls for price-setting on the basis of prices charged by competitors
• Markup pricing


  is a form of cost-oriented pricing in which the firm sets prices by adding per-unit merchandise costs, operating expenses and desired profit
• Distribution


  refers to the process of moving goods and services from the firm to the buyers.
• Direct sales


  is the most effective channel if the plant is to move goods directly to the ultimate users.
• Original equipment manufacturer sales


  involves selling a manufactured product to another manufacturer who, in turn, incorporates the same to his product and which is later sold as a finished product to the end user. An example is the sound system incorporated into cars.
• Manufacturer’s representatives


  are wholesalers employed by one or several producers and paid on commission according to quantity sold.
• Wholesalers


  are channel members that sell to retailers or other agents for further distribution through the channel until they reach the final users.
• Brokers


  are distributors who buy directly from distributors or wholesalers and sell to retailers or end users