Buisness Section Flashcards
How to create a balance sheet
To create a balance sheet you have to understand the basic equation, then you have to calculate all your total assets and determine total liabilities to produce the owners equity
Buisness ethics
Buisness ethics are the moral guidelines and principles a business should follow. Ethical business practises can be to pay correct wages to the workers, provide a safe and working environment, (if working in restraunt) make sure the food is rspca approved and follow fair trade practises
Location of a buiness
When selecting the right location, it is vital to consider the target market because it is dependant on how convienant the right location is for your demographic
Buying an established business and building your own business
Some people choose to buy an established business which can be good because it is already running but can be expensive and risky for the company. Other ways is starting a business from scratch (sole trader) which is when a buisness is owned by one person. It may be cheaper to establish the business but the failure rate is higher
Forms of Buisness ownership stuctures
Sole trader- this business is owned by one person though the owner may have employees. There is liabilities and hard to finace
Partner ship- this business is owned by between 2 and 20 people partners but have unlimited liability
Private company- this business can have between one and 50 private shareholders. There is limited liability
Fair trade goods
Purchasing goods with a fair trade symbol. Eg with coffee beans, make sure you purchase from a ethical and non exploitive work enviroment
What is a balance sheet and how to form owners equity
A balance sheet is also referred to as a statement of financial position is a very important financial report that shows the financial state of an organisation at a particular point in time
Owners equity
The owners investment into the buisness
