Entrep.C1.L3-12.Xenocrates.Edited (1) PDF

1. Innovation theory 2. Keynesian theory 3. Alfred Marshall theory 4. Risk & uncertainty-bearing theory 5. Other theories What is innovation? It is the practical implementation of ideas that result in the introduction of new goods of services or improvements in offering goods or servic...

1. Innovation theory 2. Keynesian theory 3. Alfred Marshall theory 4. Risk & uncertainty-bearing theory 5. Other theories What is innovation? It is the practical implementation of ideas that result in the introduction of new goods of services or improvements in offering goods or services. What is Innovation in Entrepreneurship? It is the practice of creating new business ideas and plans with the intention of generating profits, helping the community and accompanying companys goals.     Terms Description Economic Things that are inputs to production of goods and services. There Resources are four economic resources: land, labor, capital, and technology. Technology is sometimes referred to as entrepreneurship Land Natural resources that are used in the production of goods and services. Some examples of land are lumber, raw materials, fish, soil, minerals, and energy resources Labor Work effort used in the production of goods and services. Some examples are the number of workers and number of hours worked. Capital Physical goods that are produced and used to produce other goods. Examples of capital would be machinery, technology, and tools such as computers; hammers; factories; robots; trucks, and trains used to transport goods; and other equipment employed in the production of a good or service. Technology/ (sometimes called entrepreneurship) The ability to combine the Entrepreneur other productive resources into goods and services. Economies of Scale refer to the cost advantage experienced by a firm when it increases its level of output. The advantage arises due to the inverse relationship between the per-unit fixed cost and the quantity produced. Stocks Market where investors buy and sell shares of companies. It's a set of exchanges where companies issue shares and other securities for trading. It also includes over-the-counter (OTC) marketplaces where investors trade securities directly with each other (rather than through an exchange) Bonds A bond is a loan that the bond purchaser, or bondholder, makes to the bond issuer. Governments, corporations and municipalities issue bonds when they need capital. An investor who buys a government bond is lending the government money. If an investor buys a corporate bond, the investor is lending the corporation money. Stocks Vs Bonds Stocks offer an opportunity for higher long-term returns compared with bonds but come with greater risk. Bonds are generally more stable than stocks but have provided lower long-term returns. By owning a mix of different investments, you're diversifying your portfolio.