Business forms Flashcards
Who owns the private sector?
The business owner themselves
Who owns the public sector?
The government
What is a public corporation?
A business that is owned by the state and offers products and services to both public and private sectors.
What are public services?
Services that provide the public with needs like the NHS
What are municipal services?
Services offered by the local government like leisure centres
What is privatisation?
Where the government has sold businesses to private sectors/businesses
What 3 things need to be done to set up a company?
Articles of association
Memorandum of association
Register with companies house
What is a company?
A business that owns its legal identity and has limited liability
What is incorporation?
is the process of establishing a business as a separate legal identity that allows it to benefit from limited liability
What is the formula for market capitalisation?
Share prices x number of shares
What are benefits of being a shareholder?
Annual report
Voting rights depending on how many shares are stronger.
Get dividends
What are effects of falling share prices?
Poor management
Bad image of the business
What are effects of rising share prices?
Good management of the business
Good public image of the business
Vulnerable to a takeover by other businesses
