1.5 Entrepreneurs and Leaders Flashcards
Entrepreneur
A person who spots an opportunity and shows initiative and a willingness to take risks in order to benefit from the potential rewards
Intrapreneurship
Involves people within a business creating or discovering new business opportunities, which leads to the creation of new parts of the business or even a new business.
Sole Trader
An individual who owns and runs their business. The business is unincorporated and has unlimited liability.
Partnership
A group or association of between 2 or more people who agree to own and run a business together. The business is unincorporated and has unlimited liability
Private Limited Company (Ltd)
A company in which a number of shareholders (not more than 50) contribute funds to the company in return for shares. Shares can only be sold to friends and family NOT on the Stock exchange. The business is incorporated and has limited liability.
Public Limited Company (Plc)
A company in which an unlimited number of shareholders contribute funds to the company in return for shares. Shares can be sold on the Stock exchange. The business is incorporated and has limited liability
Franchise
When one business the franchisor, gives another business the franchisee, permission to trade under the franchise name and selling their goods or services
Shareholders
Investors who are part owners of a company. Their liability is limited to the sum invested.
Opportunity Cost
The opportunity cost of the next best alternative foregone.
Limited Liability
Limited liability means that the shareholders are only liable for the money that they have invested. Not the overall debts of the company.
Unlimited Liability
Unlimited liability describes the potential risk that sole traders and partnerships face. They are liable for the debts of the business.
Social Enterprise
A business whose motives are not financial gains but to provide a service or benefit to society.
