Running a Business

1. The monetary value of a business’s reputation
7. When the company has become a separate legal entity from its owners (shareholders)
9. research Collecting and analysing information about customers and the business opportunities available
12. Someone who starts, operates and assumes the risk of a business venture in the hope of making a profit
13. The coordination of the human, physical, financial and information resources to achieve the goals of the business
15. The debts owed by a business to others
18. equity The value of the business to the owner(s)
19. Items of value owned by a business
21. The costs incurred in running a business
23. liability If the business cannot pay its debts, a shareholder generally loses only the money he or she invested in the business

2. The ability of a business to pay its debts on time
3. methods Used by a business to inform, persuade and remind customers about its products
4. A business owned and operated by 2–20 people
5. advantage The ability of a business to develop strategies that ensure it has an ‘edge’ over its competitors
6. factors Population characteristics that affect customer spending and include: age, ethnicity, gender, marital status, family size and income
8. profit/loss Amount remaining when operating expenses are deducted from gross profit niche market A very small segment of the total market
10. The income earned by a business
11. The rights from a manufacturer to distribute its products under its name
14. profit/loss Amount remaining when the cost of goods sold is deducted from revenue
16. opportunity Something an entrepreneur can see as an avenue to success
17. trader A business owned and operated by one person
20. market The group of customers to whom the business intends to sell its products unlimited liability When a business owner is personally responsible for all the debts of his or her business
22. management The process of identifying and minimising the risks faced by a business