2.organisation, Growth And Location Of Business

Question 1

Incorporated

Answer 1

Form of business activity which. Is a separate legal entity. It has limited liability and is owned by shareholders.

Question 2

Unincorporated

Answer 2

Type of business organisation which has unlimited liability

Question 3

Co-operatives

Answer 3

Trading organisations where a number of independent producers work and trade as though they are a single larger business. E.g supermarket.

Question 4

Sole proprietor

Answer 4

Known as sole trader. One person owns the business

Question 5

Partnership

Answer 5

Form of unincorporated business organisation which is owned by more than one person

Question 6

Unlimited liability

Answer 6

Owners of business are liable for its debts.

Question 7

Bankruptcy

Answer 7

Something that affects individuals and unincorporated businesses when liabilities are greater than its assets

Question 8

Private limited company (limited or ltd)

Answer 8

A business owned by shareholders. Normally identified by the word limited or ltd somewhere in the name of the business. Shares are bought and sold with restriction

Question 9

Private limited company (Plc)

Answer 9

Business owned by shareholders. Shares in business can be bought and sold without restriction. The business must use the words public limited company or Plc somewhere in the name of the business

Question 10

Limited liability

Answer 10

Owner of business does not risk losing personal possessions in order to pay off debts of the business.

Question 11

Insolvency

Answer 11

Limited liability company is said to be insolvent when liabilities are greater than its assets

Question 12

Entrepreneur

Answer 12

Person who sees a business opportunity and accepts the risks involved in running a business

Question 13

Merger

Answer 13

Two or more businesses join together to make one larger business.

Question 14

Take-over

Answer 14

One business buys control of another business

Question 15

Horizontal

Answer 15

Merger or take-over of another business involved in the same industry at the same stage of production

Question 16

Vertical

Answer 16

Merger or take-over of another business involved in the same industry at a different stage of production. Merger or takeover can be backwards or forwards.

Question 17

Diversification

Answer 17

Process of spreading risks by reducing dependence on one particular product or service

Question 18

Conglomerate

Answer 18

Merger or takeover of another business which is involved in a totally different business activity

Question 19

Footloose

Answer 19

Business is able to locate anyway it chooses

Question 20

Uniform business rates

Answer 20

Type of tax paid by businesses to cover the cost of providing local services

Question 21

Grants

Answer 21

Does not usually have to be paid back. Available from EU,central government or local authorities. Given to businesses to improve employment opportunities

Question 22

Infrastructure

Answer 22

Name given to basic services needed by a business in order for it to operate effectively. For example, roads, power supplies, telephones and water supplies would be included under this heading

Question 23

Greenfield site

Answer 23

Industrial or commercial development in an area that has previously not been built on

Question 24

Brown field site

Answer 24

Industrial or commercial development that was previously derelict or occupied by another industrial activity.