SBA Entrepreneurship & Small Business Fundamentals Flashcards

What is 'intellectual property' in the context of a small business?

Answer: Intangible creations of the mind such as inventions, brand names, and creative works

Intellectual property (IP) refers to intangible assets created through human intellect, including patents, trademarks, copyrights, and trade secrets.

What is the primary difference between a trademark and a copyright?

Answer: Trademarks protect brand identifiers; copyrights protect original creative works

Trademarks protect brand identifiers such as names, logos, and slogans, while copyrights protect original creative works such as books, music, and software.

Which type of business valuation method calculates worth based on the company's expected future earnings?

Answer: Income approach valuation

The income approach values a business based on its projected future earnings or cash flows, often discounted back to present value.

What is the purpose of a 'pivot' strategy in entrepreneurship?

Answer: Fundamentally changing the business model or product based on market feedback

A pivot is a strategic shift in a business's core model, product, or target market in response to market feedback or changing conditions.

What is a 'value proposition' in the context of small business development?

Answer: A clear statement of the unique benefit a business provides to its customers

A value proposition is a concise statement that explains how a product or service solves a customer's problem and why it's better than alternatives.

What is 'networking' most valuable for in small business entrepreneurship?

Answer: Building relationships that lead to referrals, partnerships, and business opportunities

Networking builds professional relationships that generate referrals, partnerships, mentorship, and access to resources and opportunities essential for business growth.