Glossary Part 1

Taking ownership of another business. Frequently used in conjunction with the word merger, as in mergers and acquisitions.

The money owed to a firm by its customers.

The outright purchase of one firm by another.

The activity of attracting public attention to a product or business, as by paid announcements in the print, broadcast, or electronic media. Not to be confused with marketing or public relations.

Individuals who back emerging entrepreneurial ventures, usually as a bridge to get from the self-funded stage to the level of business that would both need and attract venture capital.

A formal estimate of the value of something on the open market. It also describes how the estimation and conclusion of value was made.

Items of value owned by a company and shown on the balance sheet, including cash, equipment, inventory, etc.

Summary statement of a company's financial position at a given point in time, listing assets as well as liabilities.

Conditions that create disincentives for a new firm to enter an industry (see Barringer 194).

Direct exchange of merchandise and/or services between businesses.

That special feature that causes consumers to pick one company’s products over another’s (aka Unique Selling points).

A business strategy involving entering an untapped market - that has little or no competition. The strategy focuses on moving away from an existing market (Red Ocean) and searching for new markets (blue oceans). New markets give a company a very high competitive advantage as well as low price/cost pressure.

A technique used to quickly generate a large number of ideas and solutions to problems; conducted to generate ideas that might represent product or business opportunities.

The set of attributes—positive or negative—that people associate with a company.

The set of assets and liabilities that is linked to a brand and enables it to raise a firm’s valuation. However, the overall commercial value also derives from consumer perception of the brand name of a particular product or service, rather than from the product or service itself.

A program that protects the image and value of an organization’s brand in consumers’ minds.

The point where total revenue received equals total costs associated with the output.

Itemized forecasts of a company’s income, expenses, and capital needs that are also important tools for financial planning and control.

The rate at which a company is spending its capital until it reaches profitability.

Individuals who invest their personal capital directly in new ventures (aka Angel Investors).

Relating to the sale of a product for any use other than personal consumption. The buyer may be a manufacturer, a reseller, a government body, a non-profit-making institution, or any organisation other than an ultimate consumer.

Relating to the sale of product for personal consumption. The buyer may be an individual, family or other group, buying to use the product themselves, or for end use by another individual.

Provides workspace, coaching, and support services to entrepreneurs and early-stage businesses.

By far the most popular approach to franchising in which the franchisor provides a formula for doing business to the franchisee along with training, advertising, and other forms of assistance.

The plan implemented by a company to generate revenue and make a profit from operations

An individual or company who has some degree of involvement with another entity’s business dealings.

Written document detailing a proposed venture, covering current status, expected needs, and projected results for the enterprise. It contains a thorough analysis of the product or service being offered, the market and competition, the marketing strategy, the operating plan, and the management as well as profit, balance sheet, and cash flow projections.

Human, financial, physical and knowledge factors that provide a firm the means to perform its business processes.

An estimate of the worth of a business entity and its assets

Cash or goods used to generate income. For entrepreneurs, capital often refers to the funds and other assets invested in the business venture.

Amounts spent to acquire or improve assets with useful lives of more than one year.

A summary of a company's cash flow over a period of time.

Means employed to distribute goods or services from producers to customers

A formal statement of an organization’s values on certain ethical and social issues.

A tool for organizing the information a firm collects about its competitors to see how it stacks up against its competitors, provide ideas for markets to pursue, and identify its primary sources of competitive advantage.

A detailed evaluation of a firm’s direct, indirect, and future competitors

A representation of the product or service to prospective users to gauge customer interest, desirability, and purchase intent.

A form of Network Marketing in which the distributors are all also consumers, I.e., they must also buy the product for their personal use.

Is a form of protection for published and unpublished literary, scientific and artistic works that have been fixed in a tangible or material form.

A unique skill or capability that transcends products or markets, makes a significant contribution to the customer’s perceived benefit, is difficult to imitate, and serves as a source of a firm’s competitive advantage over its rivals.

Behavior orientation exhibited by established firms with an entrepreneurial emphasis that is proactive, innovative, and risk taking.