MGMT 3850 1st EditionExam # 1 Study Guide Lectures: 1 - 4Definitions:Chapter 1Entrepreneur: is someone who creates a business knowing the risks and uncertainty in trying toachieve profit and growth by identifying opportunities.Opportunity Entrepreneurs: people who start a business when they see the opportunity to do soNecessity Entrepreneurs: Those who start a business because they can’t fine work any other waySocial Entrepreneurs: business builders who seek solutions to problems to society’s problemsCloud Computing: Internet based or pay-per-use software services that allow business owners to use a variety of business applicationsMicromultinationals: small companies who focus on serving the costumer’s needsFamily-owned business: a business which include one or two more members of a family with finance control of itCopreneurs: entrepreneurial couples who work together as co-ownersSmall business: a business that employs less than 100 peopleGazelles: Small businesses that are growing at 20% a year and are creating jobsChapter 2Creativity: The ability to create an ideaInnovation: ability to apply creative solutions to problemsRapid Prototyping: transforming idea in which a model points out flaws in the original ideaPatent: a grant from the U.S. Patent and Trademark Office (PTO) to the inventor of a productTrademark: a distinctive word, phrase, symbol, design, name, logo, slogan, or trade dress that a company uses to identify itselfService mark: same as trademark except it identifies the source of service rather than a productChapter 3Intellectual capital: Human Capital: talents, creativity, skills, and abilities of a company’s workforce. Structural capital: accumulated knowledge and experience that a company has. Customer capital: established customer baseStrategic management: developing a game plan to guide the companyCompetitive advantage: combination of factors that set a business apartCore competencies: unique set of capabilities that a company acquiresStrengths: positive internal factorsWeaknesses: negative internal factorsOpportunities: positive external factorsThreats: negative external factorsKey success factors: factors that determine a company’s ability to compete successfullyCompetitive profile matrix: allows companies to evaluate themselves against competitorsObjectives: specific targets of performanceStrategy: “road map” of the actions an entrepreneur makes to accomplish goalsCost leadership strategy: strive to be the lowest cost producerDifferentiation strategy: built to gain customer loyalty Focus strategy: identify needs and excel in meeting those needsChapter 4:Product or service feasibility analysis: determines degree to which a product or service appealsto potential customersPrimary research: gathering data first handSecondary research: gathering data that has already been compiledFocus Group: have a small group of potential customers to give you feedbackIn-Home trial: send researchers into customer’s homes to see them use the company’s product or serviceBusiness Plan: written summary of an entrepreneur’s proposed businessFeature: descriptive fact of a productBenefit: what the customer gains from a