Class Notes (1,100,000)
CA (620,000)
Ryerson (30,000)
GMS (2,000)
GMS 200 (1,000)
Lecture 5

GMS 200 Lecture Notes - Lecture 5: Initial Public Offering, Sole Proprietorship


Department
Global Management Studies
Course Code
GMS 200
Professor
Shavin Malhotra
Lecture
5

This preview shows half of the first page. to view the full 1 pages of the document.
GMS Chapter 5
Entrepreneurship - Is risk-taking behaviour that results in new opportunities
Entrepreneur - A person willing to pursue opportunities in situations others view as problems or threats
Necessity-based Entrepreneurship - Takes place because other employment options don't exist
Small Business - Fewer than 100 employees, independently owned, and does not dominate the industry
Franchise - One business owner sells to another the rights to operate the same business in another location
Family Business - Owned and controlled by family members
Succession Problem - The issue of who will run the business when the current head leaves
Succession Plan - Describes how the leadership transition and related financial matters will be handled
Debt Financing - Borrowing money that must be repaid over time with interest
Equity Financing - Exchanging ownership shares for outside cash investment. Does not need to be paid back
Venture Capitalists - Make large investments in new ventures in return for an equity stake in the business
Initial Public Offering (IPO) - An initial selling of shares of stock to the public at large
Angel Investor - A wealthy individual willing to invest in a new venture in return for equity
First-Mover Advantage - Being first to exploit a niche or enter a market
Business Plan - Describes the direction for a new business and the financing needed to operate it
8 Reasons why Small Businesses Fail:
1. Lack of Experience
2. Lack of Commitment
3. Lack of Strategy
4. Ethical Failure
5. Lack of Expertise
6. Growing Too Fast
7. Lack of Strategic Leadership
8. Poor Financial Control
Types of Businesses
Sole Proprietorship - A form of business where an individual pursues profit
Partnership - Form of business where two or more people agree to contribute resources to start and operate a business together
Corporation - A legal entity that exists separately from its owners
Limited Liability Corporation - Hybrid business combining advantages of the sole proprietorship, partnership, and corporation
You're Reading a Preview

Unlock to view full version