Line extension is a multi-branding strategy used when marketing new products by utilizing a brand name that is well known and established. Line extension aims at satisfying the diverse customer needs while at the same time taking advantage of a brand name that is well known.
A Franchise And A License
A franchise is a license agreement between the franchisor and the franchisee, where one party is allowed to operate under the existing brand name. The franchise is accompanied by a fee payable to the franchisor. However, a license is extremely different from a franchise, since when one obtains a license he does not buy the company, but he is expected to operate under the stated conditions and terms.
What Is One Method Of Valuing A Business That Is Profitable And Is Likely To Be Profitable In The Future?
Going concern asset-based approach is extremely useful when valuing a business. The total assets are subtracted from total liabilities so as to ascertain the real value of the company.
This is a type of business that is owned by a single person commonly referred as a sole proprietor. The sole proprietor has a lot of tasks and responsibilities. It is the simplest form of business that exists. He does not enjoy limited liability as in the case of large corporations so forming the business requires less legal requirements. He pays all the debts, and all his personal property is liable to forfeiture if he fails to service the debts. In addition, the owner enjoys quick-making, and he enjoys all the profits.
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Partnership is another form of business that is commonly operated by more than one person. In partnership business, there are more always two or more parties who come together with the aim of running a business for profit making purposes. In this type of business, the partners have a lot of advantages since they can quickl pull resources together and create a large capital base. In addition, the partners can benefit from expert skills since they can employ their different skills for the good of the business.
This is another type of business that operates under certain legal obligations. This kind of business is a separate legal entity that is different from its owners. Corporations are owned by many people who are referred as shareholders. The corporations have a large capital base, and they can be able to engage in substantial investments since the shareholders pull a lot of resources together. The shareholders in this case, enjoy limited liability. They can only pay the debts of the company in proportion of the capital that they have put in the business.
The term refers to balance that is usually obtained by subtracting any depreciation that has occurred throughout the life of the machine from its entail purchase cost. The book value should not be confused with the market value of an asset.
A future earnings is an extremely broad term, used to describe the earnings that were lost due to an injury. It can be denied as the difference between the earnings that one could have received if he was not injured and the earnings that he receives as a result of the injury.
This term refers to the price that an asset or an item would cost in the existing market. The term is used in the valuation as well as in asset valuation.
The term can be defined by all the variable costs that have been used in the production of a product from the set price of the product. The Contribution margin is a useful tool in decision-making involving a variety of products.
Operating profit refers to earnings that are generated from the normal buusiness operations. It excludes all the incomes that are obtained from non-operating functions.
Net profit the term refers to all the revenue that the company receives less all the expenses that the company uses in the process. In other words, it is the final profit that can be set apart for distribution among the shareholders.
Demographics refer to the distinct characteristics of a population based on age, sex, and economic factors among others. The data is extremely useful in business, as well as in governments for planning purposes.
Market segment is a group of individuals, business, or a region possessing similar needs.
Product Life Cycle
Product life cycle this is a description of the various stages that a product undergoes since its initiation up to a point of its decline.
Describe Three Rules For Managing Your Cash
Collect credit from creditors on the realistic date. One should seek a long deadline when paying debtors and plan carefully. One should focus on buying goods according to their priority.
This refers to money that the other people owe the business. Accounts receivable may arise due to sales that were not paid in cash. Accounts receivable are recognized as part of the company assets.
This refers to a type of financing where investors provide potential start-ups and small enterprises with capital. It is the best source of funding for a business that cannot access capital markets.
The term is defined as the sum total amount of borrowed funds in the firm. In some cases, it may refer to all debts that the company has used to purchase its assets.
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