zacs business key terms and others

• partnership: a business owned by a group of 2 or more people
• private limited company: incorporated business that is owned by shareholders<who invest in the business for a share of the profits
• retained profit: money the business keeps rather than paying it out to shareholders
• share capital: money that is raised by a business issuing shares that can be sold to raise money
• trade credit: a credit arrangement that is offered to only to a business by suppliers
• venture capital: money that a business sources from individuals, or groups of people, who wish to invest their own money into a new business
• multinational: a business with operations in more than one country
• obsolete: out of date or no longer in use
• marketing mix: the 4ps- product,place,price,promotion
• legislation:the laws that a business must comply with
• logistics: the organization and management of the transport of raw materials and goods
• public limited company:incorporated business that sells shares to the public
• profit margin: the proportion of revenue left over after costs have been deducted
• loan: a sum of money that is borrowed and repaid with interest over a period of time
• crowd funding: raising money from a large number of people in return for a reward
• personal savings: covering short term expenses that can be repaid rapidly
• venture capital: raising capital from investors
• share capital: raising large amounts of money by selling equity in a limited company
• bank overdraft: covering short-term expenses that can be repaid quickly
• trade credit: paying for stock or goods later,when goods have already been sold
• market segmentation: splitting the market into groups of people with similar characteristics
• qulitative data: information that doesn't involve numbers
• quantative data: data that can be expressed as numbers and statistically analyzed
• cash is needed for:

  paying suppliers

  repay bank loans

  pay wages to employees

  buy raw materials

  promote the business
• ways to compete:

  wider product range

  lower prices

  better customer service

  higher quality