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Flashcards in Unit 7 Deck (20)
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1
Q

Innovation

A

A type of change where new ideas can lead to breakthroughs or incremental improvements

2
Q

Entrepreneurship

A

Organzing, managing, and assuming all business risks.

3
Q

Social entrepreneur

A

Focuses mostly on broader social missions designed to achieve large scale results

4
Q

Locus of control

A

Whether you think circumstances are under your direct control (internal) or outside (external) of your control.

5
Q

Venture capital

A

Dollars provided by investors that involve high risk/high earning potential

6
Q

Cost minimizations

A

Only costs are compares because outcomes are equal

7
Q

Cost effectiveness

A

Outcomes values in natural units. Measures both costs and outcomes between competing alternatives.

8
Q

Cost utility

A

Difference in quantity and quality of life

9
Q

What is six sigma

A

Quality improvement technique… something about 99.99% accurate

10
Q

What is intrepreneurship

A

A person who operates as an entrepreneur but is an employee of the organization

11
Q

Difference between intra and entrepreneurs

A

Intra have existing support networks, entrepreneurs often start without them. Intra must work within the corporate hierarchy. Intra faces career risk, entrepreneurs face financial risk

12
Q

5 strategies of intrapreneurship

A
Define the opportunity or problem
Build support
Mobilize resources
Execute the project
Complete the venture
13
Q

How are the micro and macro views of entrepreneurship different

A

Micro focuses on describing internal entrepreneurship characteristics (internal locus of control)
Macro focuses on external components of entrepreneurial effectiveness.

14
Q

3 factors of concern in the macro view of entrepreneurship

A

Environmental, financial/capital, displacement

15
Q

Various approaches to entrepreneurship

A

Events approach: Articulates innovation, triggering events, implementation and growth in order to be effective. Emphasizes that these processes do not occur in succession.
Assessment approach: Comprehensive mix of attributes, characteristics and behaviors that define an individuals potential
Multidimensional model: 4 broad categories must be considered (individual, environmental, organization and process). Dynamic process

16
Q

Elements included in a business valuation

A

Understand earnings before interest, tax and debt payments.

17
Q

What is EBITDA

A

Revenues-expenses (Expenses don’t include interest, tex, depreciation and amortization)
Earnings Before Interest, Tax depreciation, Debt payments or Amortization

18
Q

Differentiate strategy from operational effectiveness

A

Strategy involves competitive advantage
Operational effectiveness conducts activities that are similar to the competitors but offer improvements (Increased speed, higher quality, cheaper price)

19
Q

Describe the 4 categories of risk incurred by entrepreneurs

A

Financial risk: Capital/economic resources
Career risk: Potential to find other work if previous venture fails
Social risk: Increased commitments take away from friends and family and other social aspects of life.
Psychological risk: Psychological barrier of having to engage in risky business endeavors.

20
Q

Characteristics of a learning organization

A

Shared vision,