Business Flashcards
(24 cards)
advantages of sole traders
Easy to set up
Quick registration
Low cost
Minimal paperwork
Simplified accounting
No formal meetings
Financial benefit (all profits go to the owner)
No profit sharing
Reinvestment
Complete control
Disadvantages of sole traders
Personal risk
Risk of loss (personal assets are risk if their business fails)
Financial responsibility
Funding challenges
Limited resources
Growth constraints
High workload
Long hours
Work-life balance
Stress
Complete control
Visual Merchandising definition
Highlighting certain products
tends to involve 5 senses
define planogram
A plan for the layout of the shop/shelf
consideration of a planogram
best and worst-selling products
promotions
most profitable items
colours of products
stock levels
shelf capacity
how the shelf will look
Define gross profit
the amount left after taking away the costs of creating goods/services from revenue
Define net profit
the actual profit after all expenses are paid
Income definition
How much money the business earn after expenses were paid
Define COGS
costs of goods sold
Define forecasting
predicting future sales, trends, or problems based on current knowledge
What is ISO 9000
Set of standards that is designed to manage quality. Sets a baseline for performance for businesses
Define stakeholders
a person or group that has an interest in a business
define primary stakeholders
Business cannot run without these stakeholders
What are secondary stakeholders?
Business affects the stakeholders but the business does not depend on them
What is a limited company?
a business that is owned by shareholders who have bought shares in the company.
Advantages of a limited company
each shareholder has limited liability
the dept is spread among them
easier to raise finance
Disadvantages of a limited company
- complicated/costly and time-consuming to set up
- compliant is accountable to its shareholders
- the company must provide accounts for the public
What is a partnership?
Two or more people, up to 20, start a business together. they must sign a partnership agreement, a contract of partnership and a deed of partnership
What is a silent partner?
provide council when asked. they also make a business contract and step in to mediate when disagreements among other parties arise
What is a KPI?
key performance indicator. used to check performance or progress against their goals
What is a freelance business?
Someone who is hired for a service. they decide their own hours and prices
Define franchisor
person or business who offers other businesses its trading methods, products and business logos
Define franchisee
The person who sets up a location on their own for a franchise
