3. Sole Traders, partnerships, social enterprises and franchises Flashcards
Legal status
Position defined by law
Innovator
Someone who introduces changes and new ideas
Labour
People employed in a business/used in production
Unincorporated
business where there is no legar difference between the owner and the business
Incoporated
Business that has a separate legal identity from that of its owners
Sole trader or sole proprietor
Business owned by a single person
Unlimited liability
Owner of a business is personally liable for all business debts
Partnership
Business owned by between 2 and 20 people
Deed of partnership
Binding legal document that states the formal rights of partners
legally binding
agreement has been made, and certain actions are now either or prohibited by law
limited partnership
Partnership where some partners contribute capital and enjoy a share of the profit but do not take part in the running of the business
limited liability
business owner is only liable for the original amount of money invested in the business
audits
Official examination of a company’s financial records in order to check that they are correct
franchise
structure in which a business allows another operator to trade under their name
merchandise
goods that are being sold
social enterprise
Business that aims to iumprove human or environmental weelbeing, charities for example
cooperative
Company, factory or organisation in which all the people working there own an equal share of it
Consumer cooperative
Cooperative that is owned by its customers
retail coperative
cooperative of retail members, who often work together to assert their purchasing power
worker cooperative
cooperative that is owned by its employees
charities
organisations that give money, goods or help to people who are poor, sick or in need
accountable
responsible for the effects of your actions and willing to explain or be criticised for them
transparent
language or information that is clear and easy to understand
