fs Flashcards
fs
define ‘sole trader’
a sloe trader is a person who is an exclusive owner of a business
3 advantages of being a sole trader
complete control over a business, tax efficiencies, you can keep all profits
3 disadvantages of being a sole trader
cant raise startup capital, no health of other benefits, no paid time off
define partnerships
formal arrangement by two or more parties to manage and operate a business and share its profits
3 advantages of being in a partnership
Partners have limited liability, Varied Cash Flow and Share Expenses
3 disadvantages of being in a partnership
complicate decision-making, Shared Profits, Potential for Conflict
define income tax
tax levied directly on personal income
define corporation tax
tax levied on companies profits
define sales tax
a tax on sales or on the receipts from sales
define indirect tax
tax on consumption of goods and services
define variable cost
a cost that varies with the level of output eg. cost of raw materials
define fixed cost
costs that are independent of volume eg. rent and lease costs
define primary market research
a unique study conducted by yourself to discover the wants and needs of consumers who fit the description of your target market
how to conduct primary market research
eg. surveys and focus groups
define secondary market research
when a company uses existing information from other sources like reports articles or surveys to learn about its market and customers
