Current Liabilities are a company’s debts or obligations that are due within the next one year. Current liabilities appear on the company’s balance sheet and include short term debt such as bank loans and overdrafts, accounts payable (money owed to suppliers – trade creditors), accrued liabilities and other debts.
An entrepreneur can opt to set up a new independent business and try to win customers. An alternative is to buy into an existing business and acquire the right to use an existing business idea. This is called franchising. A franchise is a joint venture between: franchisee franchisor Many well-known high street opticians and burger bars […]
A limited company has special status in the eyes of the law. These types of company are incorporated, which means they have their own legal identity and can sue or own assets in their own right. The ownership of a limited company is divided up into equal parts called shares. Whoever owns one or more of […]
You can set up (‘incorporate’) an LLP (limited liability partnership) to run a business with 2 or more members / owners. A member can be a person or a company, known as a ‘corporate member’. Each member pays tax on their share of the profits, as in an ‘ordinary’ business partnership, but isn’t personally liable for […]
Partnerships are businesses owned by two or more people. Doctors, dentists and solicitors are typical examples of professionals who may go into partnership together and can benefit from shared expertise. One advantage of partnership is that there is someone to consult on business decisions. The main disadvantage of a partnership comes from shared responsibility. Disputes […]
A sole trader describes any business that is owned and controlled by one person – although they may employ workers. Individuals who provide a specialist service like plumbers, hairdressers or photographers are often sole traders. Sole traders do not have a separate legal existence from the business. In the eyes of the law, the business and […]
Businesses sell to customers in markets. It is important to establish consumers’ needs before launching a new product. A business conducts market research to help identify gaps in the market and business opportunities A market is any place where buyers and sellers meet to trade products – it could be a high street shop or […]
Often referred to as it’s USP this is the unique thing about the product that makes consumers buy it. This can be branding, packaging or a feature of the product.
The marketing mix is the combination of product, price, place and promotion for any business venture. A company needs to consider the marketing mix in order to meet their consumers’ needs effectively. No one element of the marketing mix is more important than another – each element ideally supports the others. Firms modify each element in […]
Current assets are cash and other assets expected to be converted to cash or consumed either in a year or in the operating cycle (whichever is longer), without disturbing the normal operations of a business. These assets are continually turned over in the course of a business during normal activity. There are 5 major strands included […]