making the business effective

Created by

evie laycock

Cards (32)

what is limited liability?
the level of risk is limited to the amount of money that has been invested in the business or promised as investment
what does incorporated mean?
the business and the owners are separate in the eyes of the law
what is unlimited liability?
a legal concept where the owner of a business is personally responsible for all debts and liabilities of the business.
what does unincorporated mean?
a business that isnt registered as a company, so the owners and business and of the same legal entity
what is a sole trader?
an unincorporated business owned by one person
what is a partnership?
A legal agreement between two or more individuals or entities to jointly operate a business and share its profits and losses and risks
what is a deed of partnership?
Legal document that defines the terms of a paertnership
what is a private limited company (LTD)?
an incorporated business that is owned by shareholders
what is a franchise?
when one person givers another business permission to trade using its name and products in return for a fee and share of its profits (mcdonalds)
what is a franchisor?
an established business that gives permission to an entrepreneur to trade using its name and products
what is a franchisee?
the entrepreneur who pays a fee to trade using the name and products of a franchise
what is labour?
workers or the workforce
what is footfall?
the number of people passing a location in a specific time period
whats the national living wage?
the minimum amount a business legally is allowed to pay its employees
what is a bulk-gaining product?
a product bigger than its raw materials, e.g. bike
whats a bulk-reducing product?
a product thats smaller than its raw materials, e.g. paper
what is a convenience good?
a product that a customer buys frequently or routinely
what is a shopping good?
a product that the customer takes time to consider before buying, by looking at or comparing options before choosing one
what is topography?
the physical characteristics of a landscape, such a hilly or flat
what is inertia?
a tendency to keep things as they are rather than change
what is a multi-channel?
using a number of methods to reach a customer, including physical stores and e-commerce
what is an undercut?
selling the same product for a lower price than competitors
what is a price war?
when competing businesses try to undercut eachother by lowering prices, this leads to an ongoing battle where only the customer benefits, not the businesses
what is product differentiation?
designing a product with some unique features that distinguish it from similar products sold by competitors
what is brand loyalty?
a customers willingness to buy a product from a certain business rather than its competitors
what is recession?
a period of economic decline where the economy has failed to grow for the past 6 months
what is the promotional mix?
the combination of promotional activities a business uses to make customers aware of their product
what is a business plan?
a document that outlines how an entrepreneur is going to set up new business
what are SMART objectives?
specific, measurable, achieveable, realistic, and time-bound
what is revenue?
the money that comes into a bsuiness from sales
what are budgets?
pre-set financial targets for a business to achieve, like a sales budget, in a given period of time
what is a negative cash balance?
when a company is writing more check than they physically have- resulting in a negative cash balance