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Growth & Opportunity for Entrepreneurs Flashcards

Growth & Opportunity for Entrepreneurs Flashcards
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Target Market

We use this term when talking about the kind of customer a business most wants to attract.

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Market Share

This reflects how much of a local given market is controlled by a specific business.

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Market Development

Businesses grow in this way when they keep their preexisting services or goods and expand through a new market.

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Inorganic Growth Method

Organizations that use this method to grow generally do so by joining with another company or by buying another company out.

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SMART Goals: Components

Specific

Measurable

Attainable

Realistic

Time-Bound

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Digital Strategy (Digital Media Strategy)

A new strategy in business planning that must have clear goals that can be measured. It focuses on using new technologies.

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Knowledge-Based Economy

An economy with a skilled workforce that generates income based on gains in information. Intellectual capital is valued more than any other asset in this kind of economy.

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Renewable-Energy Certified

A title given to companies that are eco-friendly and that use energy sources that can be replenished. This can also be called green certification.

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Sustainability

Businesses practice this when they consider the overall needs of the environment, community and company when making decisions. They can focus on improving society and using organic goods.

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Break-Even Point: Formula

Fixed costs / (Sale Price - Variable Costs)

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Break-Even Point

The amount of money you have to earn to cover all expenses and bills.

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22 cards in set

Flashcard Content Overview

Check out methods of inorganic and organic business growth with this set of flashcards. You can focus on market development and current trends that impact windows of opportunity in the business world. The importance of sustainability and digital strategy is also covered by these cards. Furthermore, you'll be able to review profitability ratios that can help you decide if a business opportunity is worth taking.

Front
Back
Break-Even Point

The amount of money you have to earn to cover all expenses and bills.

Break-Even Point: Formula

Fixed costs / (Sale Price - Variable Costs)

Sustainability

Businesses practice this when they consider the overall needs of the environment, community and company when making decisions. They can focus on improving society and using organic goods.

Renewable-Energy Certified

A title given to companies that are eco-friendly and that use energy sources that can be replenished. This can also be called green certification.

Knowledge-Based Economy

An economy with a skilled workforce that generates income based on gains in information. Intellectual capital is valued more than any other asset in this kind of economy.

Digital Strategy (Digital Media Strategy)

A new strategy in business planning that must have clear goals that can be measured. It focuses on using new technologies.

SMART Goals: Components

Specific

Measurable

Attainable

Realistic

Time-Bound

Inorganic Growth Method

Organizations that use this method to grow generally do so by joining with another company or by buying another company out.

Market Development

Businesses grow in this way when they keep their preexisting services or goods and expand through a new market.

Market Share

This reflects how much of a local given market is controlled by a specific business.

Target Market

We use this term when talking about the kind of customer a business most wants to attract.

Profitability Ratios

Tools to gauge how well a business makes revenue in comparison to the way it incurs expenses.

Profitability Ratios: Examples

Net profit margin

Operating margin

Gross profit margin

Return on equity

Return on assets

Earnings Before Interest and Taxes (EBIT)

This is sometimes called your net operating margin. It is found with the formula: (operating profit / net sales) * 100.

Net Profit Margin

This tells you about a business's profitability. You find this with the formula: (net income / net sales) * 100.

Profit

The amount of money a company has left over after paying all of its expenses and other costs.

Return on Assets (ROA)

You can look at this to see if your business is using assets in an efficient and effective way. Its formula is: (net income / total assets) * 100.

Return on Equity (ROE)

This tells us how much profit investors make for each dollar invested. You find it with the formula: (net income / common shareholder equity) * 100.

Window of Opportunity

Temporary chances for a business to take advantage of new customer interests to make additional sales.

Political Trends

Trends that are connected to changes in laws. This may include brand new laws or simply adjustments to laws that already were in place.

Technological Trends

These trends are tied to advances in things like computers or phones. The development of apps is tied to this kind of trend.

Gross Profit Margin

Businesses look at this to measure how much production costs. It involves this formula: (gross profit / net sales) * 100.

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