1. Match the words with their definitions. EFFICIENCY, FACILITIES, DEMAND, COSTS, EXPANSION, OVERHEADS, CONSUMERISM, REWARD, GOODWILL, TAX 1) A need for or a desire for a commodity, together with the ability to pay for it, as in the law of supply and demand. 2) A consumer protest against the perceived injustices in exchange relationships and […]

Good record keeping by a business is not only wise, but is required by many laws. Legal and financial questions may be raised by various agencies, banks, and employees. These questions can be accurately1 answered when written records of business proceedings are kept. By recording daily transactions2, the owner can learn from mistakes and avoid3 […]

4. Complete the following sentences by pulling the bracketed verb into the right tense 1) Inflation (increase) steadily this year. 2) Unemployment (peak) last year and since then (go) down. 3) As the international debt crises (grow), the world economy (become) more unstable. 4) The IMF (carry) out a study last year. In this study […]

Chances of success for any new business are greatly increased when attention is first directed to a comprehensive business plan. A complete business plan provides a total visualization of the firm before operations are started. When financial assistance is necessary from bankers, trade creditors, or investors, their first request will be to see the total […]

It is very important to have the facts about how many potential buyers are in your projected Sales area1 And to know their needs and wishes before you invest. It is better to have the facts than to Merely2 have a feel for how your products will sell. This requires Thorough3 study of the market […]

New firm planners do some serious thinking about what legal form to choose for their new endeavor1. This means determining what the status of the business will be in the eyes of the law. The choice has very important consequences2. Three legal forms (1. single proprietorship3, 2. partnership, 3. corporation) are available4 to small firms. […]

The capital of a business consists of those funds used to start and run the business. The funds may be either the owner’s (equity capital1) or creditor’s (debt capital2). Capital is also classified, depending on its use, as fixed or working. Fixed Capital3 refers to items bought once and used for a long period of […]

The total demand for the goods or services offered by any small firm can be divided into established demand1 and newly created demand, sometimes called promoted demand2. Established demand is that volume of sales which comes without conscious outside promotion by the firm. People buy because they have had positive experiences with the firm’s products, […]

FACTORS AFFECTING INDIVIDUAL PRICES. The prices that any firm can charge for its merchandise are subject to many influences. Some or all of the following considerations may apply in a particular case: 1. Fair trade laws, 2. Nationally advertised prices, 3. Desired customer clientele1, 4. Competitor price policies, 5. Market strategy2, 6. Manufacturers’ suggested prices, […]

There are few axioms in the world of business, but one of them is "if you sell on credit you will increase sales, even to the same customers to whom you previously sold for cash only". This alluring proposition has great appeal to small business firms. Sales are the foundation of profits, and anything that […]