BUS305 Study Guide
Unit 1: Elements of Entrepreneurship
1a. Analyze the entrepreneurial process through which business ideas are evaluated
1. Entrepreneurship plays a significant role in the US economy.
- What does it mean to be an entrepreneur?
- What are at least two ways that business ideas are formed?
- Do you understand what it means to be an entrepreneur?
- Do you feel like you understand how business ideas are formulated?
2. The evolution of entrepreneurship in the United States came about due to many different factors, including the early belief in small business, the growth and expansion of railroads and other means of mass transportation, and legislation that was designed to protect business owners.
- How has economics helped shape the development of entrepreneurship in the United States?
- What legislative acts have contributed to the modern business environment?
3. Entrepreneurs evaluate the potential for their ideas to become viable business opportunities by conducting research.
- What are the stages of the entrepreneurial process where entrepreneurs conduct research?
- What is the difference between incremental innovation and disruptive innovation?
To review, see An Entrepreneurial Model.
1b. Identify the characteristics of successful entrepreneurs
1. Entrepreneurs exhibit various traits that enable them to address the unique set of experiences that come with business ownership. Entrepreneurs can be defined as individuals who start a business from the ground up or individuals who become franchisees. Individuals may be serial entrepreneurs who continually reinvent themselves as business owners, or entrepreneurs can be part of the corporate environment.
- What is the difference between an entrepreneur and an intrapreneur?
- What characteristics that drive the entrepreneur?
- Do you think you have the potential, skills, and personality to become a successful entrepreneur?
2. Explore your entrepreneurial potential. How viable is it to become an entrepreneur?
If you are still unsure whether or not entrepreneurship is right for you, take another look at An Entrepreneurial Model and the Assessment Survey. Both of these resources can help you if you are interested in pursuing an entrepreneurial venture. Entrepreneurship reviews truths and myths about entrepreneurship. Review them to see if these factors apply to you and whether your beliefs about entrepreneurship are accurate.
1c. Distinguish between business ideas and opportunities
1. Not all business ideas have the potential to become successful business ventures.
- What is the primary difference between a business idea and a business opportunity?
In addition to a title page and a table of contents, a business plan will include sections on the market and competition, a marketing strategy, an operations plan, identification of management, a financial plan, and supporting documents. The business plan is a key factor in taking your concept to the next level: determining if a real business potential exists. A business plan can be a complex document, so reviewing its contents will be valuable as you head into the final exam.
2. Not all business plans present a viable business opportunity.
- Why do some businesses remain small while others have the potential to become high-growth ventures?
- What are the steps in evaluating the business plan?
If you become an investor in a new enterprise, you will need to know what to look for to evaluate the viability of the product or service described in the business plan.
1d. Examine entrepreneurial potential
1. There are several ways to protect your business enterprise.
- What are the features of each of the primary legal entities for a business enterprise? (Sole proprietorship, partnership, limited liability corporations, and corporations)
- What is intellectual property? What might that mean for your business enterprise?
- What are the pros and cons of each legal structure available to the business owner?
2. Ethics plays a strong role in how business owners operate their company and, in turn, how the public views the company. Companies adopt various strategies for ensuring that they are good corporate citizens, including by making donations of goods and services, either regularly or through periodic contributions.
- What is ethics?
- How are companies judged by the public based on their actions?
To review, see Business Ethics in a Nutshell.
Unit 1 Vocabulary
This vocabulary list includes terms that might help you answer some of the review items above and some terms you should be familiar with to be successful in completing the final exam for the course.
- Angel investor
- Business plan
- Clayton Antitrust Act
- Copyright laws
- Corporate culture
- Corporate responsibility
- Due diligence
- Intellectual property
- Interstate Commerce Act
- Market research
- Patent laws
- Robinson Patman Act
- Sherman Antitrust Act
- Sole Proprietors
- Venture capital