Running A Small Buisness Flashcards
Demographic factors
These include;
- age
- gender
- income
Entrepreneur
Someone who comes up with the money making idea and takes the risk
Expenses
The costs in running a business
Franchise
The rights from a manufacturer to distribute its products under its name
Goodwill
The monetary value of a business reputation
Gross profit/ loss
Amount remaining when the costs of goods sold is deducted from revenue
Incorporation
When a company has become a separate entity from its owners ( shareholders )
Liabilities
Depts owed by a business
Limited liability
Business with shareholders: If a business cannot pay its depts shareholders only loose what they have invested in business
Unlimited liability
No shareholders: when a business owner is personally responsible for all the depts
Liquidity
The ability of a business to pay its depts on time
Net profit/ loss
Amount remaining when operating expenses are deducted from gross profit
Niche market
A very small segment of the total market
Owners equity
The value of the business to the owner
Revenue
Income earned by a business
