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

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 200
• Professor: Shavin Malhotra

Document Summary

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. Venture capitalists - make large investments in new ventures in return for an equity stake in the business.