1.5.4 Forms of a business Flashcards
Articles of Association
A document that provides details of the internal running of a limited company.
Certificate of incorporation
A document that declares a business is allowed to trade as a limited company.
Co-operative
A business organisation owned by its members, who have equal voting rights.
Deed of Partnership
A binding legal document that states the formal rights of partners.
Franchise
A business model in which a business (the franchisor) allows another operator (the franchisee) to trade under their name.
Life style business
A business that aims to make enough money and provide the flexibility needed to support a particular lifestyle for the owner.
Limited company
A business organisation that has a separate legal identity from that of its owners.
Limited liability
A legal status which means that a business owner is only liable for the original amount of money invested in the business.
Limited partnership
A partnership where some members contribute capital and enjoy a share of the profit, but do not participate in the running of the business. At least one partner must have unlimited liability.
Memorandum of Association
A document that sets out the constitution and states key external details about a limited company.
Mutual organisation
A business owner by its members, who are customers not shareholders.
Online business
A business that uses the global communications infrastructure of the internet as a trading base.
Partnership
A business organisation that is usually owned by 2-20 people.
Primary sector
Production involving the extraction of raw materials from the earth.
Secondary sector
Production involving the conversion of raw materials into finished and semi-finished goods.
