Chp 3 Enterprise, Business Growth, & Size

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entrepreneur

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a person organises, operates, and takes the risk for a new business venture

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business plan

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a document containing the business objectives and important details about the operations, finance, and owners of the new business.

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Capital employed

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the total value of capital used in the business

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internal growth

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when a business expands its existing operations

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external growth

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when a business takes over or merges with another business. It is often called integration as one business is integrated into another one.

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take over

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when one business buys out the owners of another business, which becomes a predator business

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horizontal integration

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when one business merges or takes over another one in the same industry at the same stage of production

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vertical integration

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when one business merges or take over another one in the same industry but at a different stage of production. [forward / backward]

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Characteristics of successful entrepreneurs:

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1. 1. hard working

2. 2. risk taker

3. 3. creative

4. 4. optimistics

5. 5. self-confident

6. 6. innovative

7. 7. independent

8. 8. effective communicator

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Benefits of being entrepreneurs:

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1. 1. Full control of your business

2. 2. income may be high

3. 3. use your own skills/interest