Chapter 16 Flashcards
1
Q
Revenue
A
Income earned by the business
2
Q
goodwill
A
Money value of a business’ reputation
3
Q
Demographic factors
A
population characteristics that affect customer spending and include: age, ethnicity, gender, marital status, family size and income
4
Q
limited liability
A
if the business cannot pay its debts, a shareholder generally loses only the money he or she invested in the business
5
Q
Sole trader
A
- A business owned and operated by one
- most common
- cheapest and simplest structure to establish
- unlimited liability
- can be forced to sell personal asserts to cover the debt payment
6
Q
Market research
A
Collecting and analysing information about customers and business opportunities available.
7
Q
Partnership 👬
A
- Business owned by 2-20 people
- unlimited liability
- share profits and losses equally
- tend to have their names in their business
8
Q
Proprietary company
A
- must have proprietary limited abbreviated after its name PTY LTD
- 2-50 private owners called shareholders
- limited liability
9
Q
Public company
A
- unlimited number of share holders
- general public can buy and sell shares in these companies
- limited liability ( LTD abbreviated after name )
- has gone through incorporation
- can sue and be sued
- can own and sell property
- will exist when the owners change
10
Q
Unlimited liability
A
when a business owner is personally responsible for all the debts of his or her business
