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15.8: Key Terms

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    burn rate
    rate at which cash outflow exceeds cash inflow
    buyback clause
    legal agreement regarding an exit by a founding team member prior to the harvesting of the venture
    code of conduct
    formal statement that provides guidance on how ethical conduct is demonstrated
    company culture
    shared beliefs, values and assumptions held by people regarding how to behave or conduct themselves within the context of fitting into an organization
    Delphi method
    group decision-making process that includes a diverse group of people who are located at different locations and willing to respond to a series of questionnaires to assist in providing ideas, information or solutions to a defined question or problem
    escalation of commitment
    tendency to continue with a predetermined action based on the past efforts and contributions to the project rather than an analysis of the current realities that disclose a new solution or approach is necessary
    fail-safe point
    identified point that triggers the entrepreneur to consider what actions are needed to bring the venture back to a healthy position and whether this action is reasonable and feasible
    founders’ agreement
    written document that addresses contractual topics such as division of equity, compensation, contributions to the venture, and commitments to the venture with timelines included
    Gannt chart
    bar chart used to organize and plan sequential steps in a process
    hindsight bias
    belief that, in retrospect, the outcome was predictable when the outcome wasn’t predictable due to various uncontrollable factors
    overinflated belief in oneself
    lifestyle business
    business that provides incomes similar to other forms of employment
    Nominal Group technique
    group decision-making process that requests multiple rounds of responses and discussions of response
    noncompete agreement
    formal agreement that the person signing the document will not work for another organization that is a direct competitor of their current employer during employment and usually for a specified length of time after employment ends
    nondisclosure agreement
    formal agreement that the person signing the document will not sharing proprietary information with outside sources
    planning fallacy
    creation of a plan that is too optimistic and not aligned with conservative assumptions
    serial entrepreneur
    entrepreneur who becomes involved in starting multiple entrepreneurial ventures
    social capital
    goodwill that is created through helping someone else
    status quo bias
    pattern of relying on previous actions and results as the accepted pattern and outcome with a bias against change or new information or new results

    15.8: Key Terms is shared under a CC BY license and was authored, remixed, and/or curated by LibreTexts.

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