Unit 1 and 2 IMPORTANT TERMS

Date : 1.April.2020 
Sub  : Entrepreneurship
Day  : 4
Time : 10am - 10:45am 
Period : 4 
Class    : 12

Learning Outcomes

• Revision of Important terms in both Units
• Familiarise students about the Important terms in both units
• Revision of the Definitions as a matter of fact

 A very good morning students 

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Today im sending you some very important terms from the two units that we have done till now

Please keep it safely because it will be very helpful for you during the exam.

Please go through the Important terms and learn them well.

From the next week we will start with a new unit

ENTREPRENEURSHIP-XII

IMPORTANT TERMS

UNIT 1 & UNIT 2

Entrepreneurship: - Entrepreneurship is the process of identifying opportunities in the market place and arranging for resources to exploit the identified opportunity in order to harness long-term gains.

Entrepreneur: - An entrepreneur is a person, who is a catalytic agent in converting a situation into an opportunity and set-up a business in the process.

Business Opportunity: - It is an economic idea which can be implemented to create an enterprise and earn profits.

Perceiving and Sensing Opportunities: - Sensing entrepreneurial opportunities is a process of converting an idea into an opportunity and then into an enterprise.

Environment Scanning: - Careful monitoring of an organisation’s internal and external environment for detecting early signs of opportunities and threats that may influence its current and future plans.

Environment Analysis: - It is the process of monitoring the economic and non-economic environment, to determine the opportunities and threats to an organisation.

Problem Identification: - When there is road block in a situation, which poses a conflict and forces you to find a solution, then this road block is a problem and when one identifies this road block, it is called problem identification.

Idea Generation: - Idea generation is a process of creating, developing and communicating ideas which are abstract, concrete or visual.

Innovation: - It is a process of entrepreneurship which involves the translation of a useful idea into an application which has a commercial value.

Meaning of a business plan: - A business plan is basically a written representation of an entrepreneur’s vision for his business. It is a comprehensively written document prepared by an entrepreneur describing formally all the external and internal factors involved in starting a new venture.

Production Plan: - Production is the most important activity of an enterprise because it is through this process that raw materials are transformed into finished products.

Operational Plan: - Operational plan is a system whereby there is achieved a smooth and coordinated flow of work within the factory so that, by planning and control of all the productive operations in all the stages of manufacture, the final product is completed in accordance with the plans.

Organisational Plan: - The organisational plan is that part of the business plan that describes the proposed ventures from of ownership.

Proforma Income Statement: - A proforma income statement gives the projected net profit of the business based on projected revenues and projected expenses.

Break-even Analysis: - Break-even analysis is a useful technique for determining how many units must be sold or how much sales volume must be achieved in order to break-even.

Target Market: - Target market means the consumers who are likely to buy a product, e.g. the target market for bikes is the younger generation.

Market Segmentation: -Dividing the market in smaller groups on the basis of consumer characteristics or buying situations is called market segmentation.

Marketing Strategy: - A marketing strategy is a marketing action plan designed to achieve goals and objectives.

Elevator Pitch: -Elevator pitch is a format of presenting a business plan. It is basically a three minute summary of the business plan which is used as a teaser to awaken the interest of the potential investors, customers or strategic partners.