Making the start-up effective Flashcards
Marketing Mix
The combination of factors which help the business to take into account customer needs when selling a product
Price
The amount of money customers have to give up to acquire a product
Product
A good or service produced by a business or organisation and made available to customers for consumption
Promotion
Communication between the business and customer, making the customer aware that the product is for sale
Place
The way in which a product is distributed – how it gets from the producer to the consumer
Sole trader (or sole proprietor)
The only owner of a business which has unlimited liability.
Unlimited liability
A legal obligation on the owner of a business to settle (pay off) all debts of the business. In law there is no distinction between what the business owes and owns and what the business owns and owes.
Limited liability
When shareholders of a company are not personally liable for the debts of the company; the most they can lose is the value of their investment in the shares of the company.
HM Revenues and Customs (HMRC)
The government authorities in the UK responsible for collecting tax.
A tax on the value of sales: it is paid by businesses to government.
VAT
A tax on the value of income earned by workers; this includes sole traders who have to pay income tax on their net earnings.
Income tax
National Insurance Contributions (NICs)
A tax on the earning of workers; Employers’ National Insurance contributions are paid by employers on the wages of their workers; employees and sole traders have to pay National Insurance contributions on their earnings.
A tax on the profits of limited companies.
Corporation Tax
Customer Service
The experience that a customer gets when dealing with a business and the extent to which that experience meets and exceeds customer needs and expectations.
Customer satisfaction
A measure of how much products meet customers’ expectations.
