UT Knoxville MGT 201 - Exam 2 Study Guide (22 pages)

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Management 201 Exam 2 Study Guide CHAPTER 6 MANAGING SMALL BUSINESS START UPS Small Business vs Entrepreneurial Venture o Small businesses could entail franchising or embarking on an already growing industry o Entrepreneurial ventures are more unique ideas that have not yet been introduced into the market place Impact of entrepreneurial companies o Job Creation o Innovation Characteristics personality traits of entrepreneurs o Internal Locus of Control o High Energy Level o Need to Achieve o Self Confidence o Awareness of Passing Time o Tolerance for Ambiguity How to launch an entrepreneurial start up o Start with an idea o Write a business plan o Choose a legal structure o Arrange financing Entrepreneurial Motivation and new business ideas 6 6 Five types of small business owners 6 1 Successful business models in ecommerce 5 models o Transaction fee model o Subscription model o Advertising support model o Intermediary model o Affiliate model Tactics for becoming a business owner o Start a new business o Buy an existing business o Buy a franchise o Participate in a business incubator Three forms of legal structure o Sole proprietorship unincorporated business owned by an individual for profit o Partnership an unincorporated business owned by two or more people o Corporation an artificial entity created by the state and existing apart from its owners Debt vs Equity financing sources of start up capital 6 7 Stages of growth Seven deadly sins CHAPTER 7 MANAGERIAL PLANNING AND GOAL SETTING Goal a desired future state that the organization attempts to realize Goals define and state and organizations purpose Plan a blueprint for goal achievement and specifies the necessary resource allocations schedules tasks and other actions Plans specify today s means Mission top of the goal hierarchy The organizations reason for existence Describes the values aspirations and reason for being A well defined mission is the basis for development of all subsequent goals and plans Mission