Business week 3 definitions

• What is a deed of partnership?

  A form of business where two or more people share ownership and responsibility for a company
• What does unlimited liability mean for business owners?

  The owners are personally responsible for all of the debts of the business, regardless of the amount
• What is a start-up?

  A new business, usually with only a small number of employees
• What is a public limited company (PLC)?

  An incorporated business owned by shareholders who invest for a share of the profits
• What are customer needs?

  The wants and desires of buyers of a product or consumers of a service
• What is an invention?

  The discovery of new processes and potential new products, typically after research
• How does innovation differ from invention?

  Innovation is the process of transforming inventions into products that can be sold
• What is tax?

  A proportion of an individual’s income or a business’s profits that must be paid to the government
• What are dividends?

  A share of the net profit paid to shareholders in the company
• What is a recession?

  A situation where economic growth is negative for a period of six months (two quarters)
• What does VAT stand for?

  Value Added Tax
• What is VAT?

  A tax on the value of sales paid by businesses to the government
• What is Corporation Tax?

  A tax the Government takes from a business that is a percentage of its net profit
• What is an asset?

  Any item of value that a business owns, such as machinery or premises
• What is the Bank of England?

  The UK central bank which serves as a bank to other banks
• What is the role of the Bank of England?

  It monitors the banking system and sets the interest rate
• What is a brand?

  A named product which consumers see as being different from other products
• What is a target market?

  A particular group of consumers at which a business aims its products and services
• What does convenience refer to in a product or service?

  The ability to fit well with a customer’s lifecycle or routine and ease of use
• What is SWOT Analysis?

  • A study undertaken by a business
  • Identifies strengths and weaknesses
  • Identifies opportunities and threats