'Chap 2' - Small Business Decision Making Flashcards
Demand
Demand in business terms is the quantity of a product that consumers are prepared to purchase.
Market Research
Market Research is a process of systematically collecting, recording and analysing information concerning a specific market.
Market Conditions
Market conditions are the features of a market into which a new product or service is to be introduced, include factors such as the number of potential customers, level of competition and potential for growth.
Innovation
Innovation is either creating a new product, service or process, or significantly improving an existing one.
Research and Development
Research and Development is a set of activities undertaken to: improve existing products, create new products and improve production.
Entrepreneurship
Entrepreneurship is the ability and willingness to start, operate and assume the risk of a business venture in the hope of making a profit.
Business Entity
Business Entity is any organisation engaged in the production of goods and services.
Incorporated Business
A business that is Incorporated has a separate legal entity from the owner(s)
Sole Trader
A sole trader (proprietor) business is a business owned and operated by one person.
Unlimited Liability
Unlimited Liability means the business owner is personally responsible for all the debts of his or her business.
Partnership
A Partnership is an unincorporated legal business structure with a minimum of two and a maximum of 20 owners.
Silent Partner
A silent or sleeping partner contributes financially to the business but take no part in the running of the partnership.
Incorporation
Incorporation is the process that businesses go through to become a registered company and a separate legal entity.
Shareholders
Shareholders (or members) are the owners of a company.
Limited Liability
Limited liability means that the shareholders in a company cannot be held personally responsible for the debts of that business.
Proprietary Company
A Proprietary (private) company is an incorporated business with a minimum of two, and a maximum of 50 private shareholders.
Cooperative
A cooperative is a democratic organisation owned and controlled by the people it serves, who join together for a common benefit.
Trust
A trust is a business structure where a trustee (usually a company) holds property or carries out business on behalf of the members of the trust known as beneficiaries.
Goodwill
Goodwill is the monetary value attached to the reputation of a particular business.
Franchise
A Franchise means buying the rights from another business to distribute its products under its name.
Franchisor
A franchisor is an individual or organisation that grants a franchise.
Franchisee
A franchisee is an individual or organisation that purchases a franchise.
Zoning
Zoning is a means by which local councils allocate land for different uses, such as residential, commercial, recreational and industrial.
Complementary Businesses
Complementary Businesses offer products or services that related to a different business and that may be of use to the customers of that business.