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320 EXAM REVIEW Difference between managers and entrepreneurs? |Characteristic |Entrepreneur | | | | |Manager | |Behavior |Desire for control |Delegation of Authority | |Management Style |One-man show |Management Team | |Driving Force…show more content…
Contingency Approach - There is no one best way to manage - Depends on internal and external environmental factors IV. Behavioral Approach - Based on the entrepreneur’s ability to achieve goals or opportunities - Strategic thinking, goal setting, and planning, are all part of defining the characteristics of an entrepreneur under this theory Debt vs Equity Financing |Debt |Equity | |Obtaining borrowed funds for the company |Obtaining funds for the company in exchange for ownership | |Must be repaid or refinanced |Can usually be kept permanently | |Requires regular interest payments. Company must generate cash flow |No payment requirements. May receive dividends, but only out of | |to pay. Tax deductible |retained earnings. Not tax deductible | |Collateral assets must usually be available |No collateral required | |Debt providers cannot share profits.

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