Business Onwership Mod,els Flashcards
Deed of partnership
A document that is signed by all of the owners of a business setting out the terms they must abide by and their obligations as owner
Dividends
A sum of money paid regularly by a company to its shareholders out of its profits
Economies of scale
Where the average cost (pod production,distrubtion and sale) fall as the business increases the amount of product that it produces,distributes and sells
Grant
A granr is money given to a business,usually by the government or loterry fund,that does not need to be paid back
Hostile takeoever
A takeover for one company (called the ‘target’ company)by another (called the ‘acquirer’) that is accomplished without the agreement of the target cimpanys management.Instead,othe acquirer approaches the companys shareholders directly or fights to rep,ace the managaement to get the takeover approved
Income tax
Tax that someone pays based on their personal income
Limited liability
When the business owner or owners are only responsible for business debts up to the value of their financial investment in the business
Profits
The amount of money made after all costs are deducted
Share capital
The money raised when a business becomes a public limited company by offering shares in the business in return for capital
Shareholders
A part owner of a private or public limited company
Shares
A percentage or portion of a company
Stock market
A centralised market where the business shares are traded
Unlimited liability
When the business owner or owners are personall responsible for all the debt of the business,no matter what the value
