Location Factors
Sometimes you may be able to attract customers from your competitors through differentiation or better marketing.
What is closeness to competitors?
A business that is owned and operated by one person.
What is a sole trader?
A summary of the income earned and the expenses incurred over a period of trading.
What is an income statement?
Collecting and analysing information about customers and the business opportunities available.
What is market research?
This is shown on the bottom line of an income statement.
What is net profit?
This is more important for retailers, as opposed to wholesalers or manufacturers.
What is closeness to customers?
This can have an unlimited number of shareholders. The shares are listed on the stock exchange and the general public may buy shares.
What is a public company?
A document which shows the financial position of a business at a particular time. It records three different sets of accounts — value of assets; value of liabilities; and, proprietorship or owner’s equity.
What is a balance sheet?
Population characteristics that affect customer spending.
What are demographic factors?
On an statement, electricity falls under this heading.
What is Expenses?
The location can be seen by both foot and vehicle traffic.
What is visibility?
A business usually owned and operated by between two and 20 people, called partners. The partners share their profits and losses.
What is a partnership?
Gross profit =
What is revenue - expenses?
Methods used by a business to inform, persuade, and remind customers about its products.
What is promotion?
Net profit retained falls under this heading on a balance sheet.
What is owner's equity?
This refers to the activities needed to assist the prime function of a business e.g. accountants or solicitors.
What is closeness to support services?
This can be formed by a group of five or more people They are small-scale, nonprofit and non-commercial in nature. They can only conduct business in the state in which they are registered. It has its own legal identity separate from its members, which provides protection to members.
What is an incorporated association?
Net profit =
What is gross profit - expenses?
If the business cannot pay its debts, a shreholder generally loses only the money he or she invested in the business.
What is limited a liability?
Machinery is an example of this on a balance sheet.
What is a non-current asset?
If leasing or purchasing, a central location is more expensive than one with lower levels of passing traffic.
What is cost?
This usually has between two and 50 private owners called shareholders. These businesses tend to be small to medium in size and are often family-owned.
What is a propietary/private company?
The accounting equation.
What is assets = liabilities + owner's equity?
The ability of a business to develop strategies that will ensure it has an edge over its competitors for a long period of time.
What is a sustainable competitive advantage?
Accounts receivable is a <blank> and accounts receivable is a <blank> on a balance sheet.
Give your answer in order
What are current assets and current liabilities?