Buisness Flashcards
Forms of Buisness Ownership?
- Sole trader
- Partnership
- Private company
What is a Sole Trader?
business ownership in which only one individual acquires all the benefits and risks of running an enterprise.
What is a Partnership?
Buisness owned by between 2 and 20 people, eg doctor, accountant, lawyer.
Private Company?
Buisness can have between 1 and 50 private share holders.
Owners Equity?
The total assets of an entity, minus its total liabilities. (owners investment in the buisness).
Current liabilities?
debts that are due for repayment within the next 12 months. eg, creditors, bank overdraft, stort term loans.
Non-Current liabilities?
debts that are due for reypayment after 12 months. for example long term loan (mortgage).
Current Assets?
cash or other assets that are expected to be used up or easily turned into cash eg stock of fuel, debtors, cash at bank.
Non-Current assets?
assets that are expected to be used in the buisness for more than 12 months for eg, fixtures and fitting, computers, motor veichles.
What are Buisness Ethics?
the moral guidlines and principles that a buisness should follow.
What is Target Market?
The market to which a buisness is specifically aiming its product or service.
