Running a Business

4. amount remaining when operating expenses are deducted from gross profit
10. if the business cannot pay its debts, a shareholder generally loses only the money he or she invested in the business
13. a business owned and operated by 2–20 people
17. something an entrepreneur can see as an avenue to success
20. the group of customers to whom the business intends to sell its products
21. when the company has become a separate legal entity from its owners (shareholders)
22. collecting and analysing information about customers and the business opportunities available
23. the ability of a business to develop strategies that ensure it has an ‘edge’ over its competitors

1. the value of the business to the owner(s)
2. when a business owner is personally responsible for all the debts of his or her business
3. the rights from a manufacturer to distribute its products under its name
5. population characteristics that affect customer spending and include: age, ethnicity, gender, marital status, family size and income
6. the costs incurred in running a business
7. the monetary value of a business’s reputation grossprofitloss amount remaining when the cost of goods sold is deducted from revenue
8. someone who starts, operates and assumes the risk of a business venture in the hope of making a profit
9. the debts owed by a business to others
10. the ability of a business to pay its debts on time
11. methods used by a business to inform, persuade and remind customers about its products
12. the process of identifying and minimising the risks faced by a business
14. the income earned by a business
15. items of value owned by a business
16. a business owned and operated by one person
18. the coordination of the human, physical, financial and information resources to achieve the goals of the business
19. a very small segment of the total market