1.4 definitions Flashcards
entrepreneur
a person who sets up a business and takes on financial risk in the hope of profit
royalties
percentage of the sales revenue to be paid to the overall franchise owner
Franchising
paying a franchise owner for the right to use an established business name, branding and methods
b2b
business to business
b2c
business to consumer
cashflow forecast
plan cash inflows cautiously
and out flows on the high side
target market
focus on the market trends rather than size
business plan
a detailed document setting out the marketing and financial thinking behind a proposed new business
private limited company
a small family business in which shareholders enjoy limited liability
limited liability
restricting the losses suffered by owners to the sum they invested in the business
unlimited liability
an individual responsible for all the debts of a failed business
sole trader
a business run by one person, that person has unlimited liability
bankrupt
when an individual is unable to pay their debts, even after all personal assets have been sold for cash
price
how much customers pay
place
the point where products are made and are available to customers
promotion
how customers are informed about products
product
the features and appearance of goods and services
marketing mix
the combination of factors which help a business sell a product. This is known as the 4 p's price place promotion product
dividends
a payment that a shareholder gets if the company makes a profit
partnership
a business ownership structure in which a small number of people own an unincorporated company
stock market
a market where shares of public limited companies can be bought and sold
shareholder
any person that owns shares in a company and therefore own part of it.
Incorporated
the process of becoming a corporate body.
meaning the business has a separate legal entity from is owner
