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commerce
definitions
9 cards·by rahul
incorporation
the company has become a separate legal entity from it's owners (shareholders).
limited liability
if the business cannot pay its debts, a shareholder generally loses only the money he or she
invested into the company
liabilities
the debts owed by a business to others
gross profit/loss
amount remaining when the cost of goods sold is deducted from the revenue
net profit/loss
amount remaining when operating expenses are deducted from gross profit
promotion
methods used by a business to inform, persuade and remind customers about its products
unlimited liability
when a business owner is personally responsible for all the debts of his or her business
owner's equity
the value of the business to the owner(s)
goodwill
the monetary value of a business's reputation, location, customer base and other factors
that make a business a profitable concern