Term of the Day entrepreneurship

Term of the Day

entrepreneurship

The capacity and willingness to develop, organize and manage a business venture along with any of its risks in order to make a profit. The most obvious example of entrepreneurship is the starting of new businesses. In economics, entrepreneurship combined with landlabornatural resources and capitalcan produce profit. Entrepreneurial spirit is characterized by innovation and risk-taking, and is an essential part of a nation’s ability to succeed in an ever changing and increasingly competitive global marketplace.
Learn more about this term
Usage Example
There are more entrepreneurs than investors on the Forbes list of wealthiest people, but that doesn’t mean entrepreneurship is necessarily a better wealth builder than investing.
Advertisements

Term of the Day ROI


Term of the Day

ROI

Return on Investment. A measure of a corporation’s profitability, equal to afiscal year’s income divided by common stock and preferred stock equity pluslong-term debt. ROI measures how effectively the firm uses its capital to generate profit; the higher the ROI, the better.
Learn more about this term
Usage Example
When deciding between two different investment opportunities, it is often advantageous to select the option that has the probability of producing a higher ROI.