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21 Cards in this Set
- Front
- Back
business life cycle, 656 |
The sequence or pattern of developmental stages any business goes through during its life span. |
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liability of newness, 657 |
The set of risks faced by firms early in their life cycles that comes from a lack of knowledge by the owners about the business they are in and by customers about the new business. |
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slack resources, 657 |
Profits that are available to be used to satisfy the preferences of the owner in how the business is run. |
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harvest, 662 |
Recover value through a sale of a firm or its assets. |
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initial public offering (IPO), 662 |
Transfer method describing the first-time public sale of a stock listed on a public stock exchange. |
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consolidation, 662 |
A transfer method in which a small business is bought by a larger firm for the purpose of quickly growing the larger firm. |
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employee stock ownership plan, 662 |
A formalized legal method to transfer some or all of the ownership of a business to its employees. |
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transfer, 663 |
An endgame strategy in which ownership is moved from one person or group to another. |
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termination, 663 |
An endgame strategy in which the owner closes down a business. |
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liquidity enhancement, 663 |
An estate planning strategy which focuses on generating cash to cover likely estate taxes. |
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tax management, 663 |
An estate planning strategy which focuses on minimizing estate tax payments. |
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estate freeze, 663 |
An estate planning strategy which focuses on transferring assets to heirs when the asset costs are low. |
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bankruptcy, 664 |
An extreme form of business termination which uses a legal method for closing a business and paying off creditors when debts are substantially greater than assets. |
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walkaways, 664 |
Business terminations in which the entrepreneur ends the business with its obligations met. |
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workout, 665 |
A form of business termination in which the firm’s legal or financial obligations are not fully met at closing. |
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reorganization, 665 |
The popular name for a Chapter 13 bankruptcy in which a bankrupt firm continues to operate while paying off debts identified by the bankruptcy trustee. |
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liquidation, 666 |
The popular name for a Chapter 7 bankruptcy in which a bankrupt firm’s assets are sold by the bankruptcy trustee and the proceeds used to pay the firm’s debts. |
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serial entrepreneurs, 666 |
People who open multiple businesses throughout their career. |
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supplemental profits, 668 |
Returns above costs intended as a secondary income for entrepreneurs (where selfemployment is secondary to their main job). |
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substitution profits, 668 |
Returns intended to equal and replace the salary or wages the entrepreneur could draw working for someone else. |
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success profits, 668 |
Returns at levels higher than the entrepreneur could make working for others. |