Welcome to Business Dictionary
The section of Complete Business Start-up which will define and explain various common commercial and management terms and definitions.
For many people starting a small business, there is jargon and phases, some of which might not be language which the person has used before.
In addition, there are some definitions, such as that for a limited company, sole trader and partnership which a person becoming self employed should probably be aware of.
Business Dictionary will expand over time as we received more emails requesting explanation of certain topics and areas. We hope to build up a library so that future visitors can benefit from it.
For inclusion of terms or phases within these pages, use the contact us form providing as much specific detail as possible.
Contribution analyses the importance of considering the net gain to a business when deciding whether or not to accept a new order. In some situations, even when the price to be charged is lower than the total costs of producing the item, the business can still achieve a valuable contribution to the overall profit.
Break-even is often a critical feature of a business plan and sets out the point that operations must achieve in order for them to remain viable. The article provides simple examples of how the additional revenue is earned once the break-even point has been breached.
Limited Company sets out the key features of this type of business entity and highlights some the factors inherent in them that make them a popular choice for those starting a small business. A useful summary of the advantages and disadvantages of limited companies is provided so that visitors can make an informed decision about the kind of business structure that matches their requirements.
Sole Trader is a look at another popular start-up vehicle and this article provides commentary on the primary benefits and drawbacks using this for commercial ventures. A useful analysis of the taxation implications for owners who choose to draw little or no income from the business is detailed.
Partnership considers this form of business entity and its similarities and differences compared to other trading vehicles. A description of typical situations where a partnership might be appropriate together with some of the measures, such as a stringent agreement, that might be necessary in order to prevent problems occurring in the future.
Limited Liability Partnership, the popular variation on the tradition entity, commentates of this hybrid organisation structure that bears elements common to companies and unincorporated businesses. The advantages and disadvantages of this vehicle are highlighted together with an assessment of the kinds industries that frequently register as limited liability partnerships.
Limited Liability is a popular attribute sought after when starting a small business. This article discusses the levels of exposure and protection provided by incorporated a company or partnership and how this can benefit the new owners.
Stakeholders is a look past the directors, owners and shareholders of business and considers the wider environment in which the organisation operates in. It lists some popular stakeholders and describes both their influence and potential requirements from a business.
Profit versus Cash raises and answers the question of how these figures can constantly differ from one another. A useful illustration is provided to highlight how business sales and expenses and the time at which they paid can give wide variations between reported profits and cash at bank.