MG354 Study Guide Exam I.txt

An economically attractive and timely opportunity that creates value for interested buyers or end users.

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.

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.

The expansion of international business, encouraged by converging market preferences, falling trade barriers, and the integration of national economies.

A plan of action that coordinates the resources and commitments of an organization to achieve superior performance.

A type of assessment that provides a concise overview of a firm's strategic situation.

A benefit that exists when a firm has product or service that is seen by its target market as better than those of competitors.

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.

Goods produced in another country, being sold in a home country.

Goods produced in a home country, being sold in another country.

You get to do it your way

The unknown factors

Already have customers and suppliers

Inherit equipment and personel you don't necessarily want

Those capabilities that provide a firm with a competitive edge and reflect its personality.

If you have a good idea others will copy it. A good competitive advantage will attract competition.

Internet based startup.

The traditional physical store from which businesses have historically operated.

Types of customers served and Nature of online presence

A business model based on selling to business customers electronically

A business model based on selling to final customers electronically

Web-based businesses offering participants the ability to list products for consumer bidding.

A business model in which the website provides access but not the ability to buy or sell products and services.

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.

A business model in which the website provides a mechanism for buying and selling products or services.

Entrepreneurial minds are constantly trying to think up new models

The exercise of reasonable care in the evaluation of a business opportunity.

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.

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.

The party involved in a franchise contract that specifies the methods to be followed and the terms to be met by the other party.

An entrepreneur whose power is limited by a contractual relationship with a franchising organization.

A value-creating position that is likely to endure over time.

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.