Chapter Two - Small Business Flashcards
Demand
In business terms, demand 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 feature of a market into which a new product or service is to be introduced, and 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, 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
A business entity is any organisation engaged in the production of goods and services.
Incorporated
A business that is incorporated has a separate legal entity from the owners.
Sole trader
A sole trader 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 or sleeping partner
A silent or sleeping partner contributes financially to the business but takes 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 are the owners of a company.
Limited liability
Limited liability means that the shareholders in a company cannot held personally responsible for the debts of that business
Proprietary (private) 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 it names.
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 are related to a different business and that may be of use to the customers of that business.
