Business ownership and location Flashcards
What is a sole trader?
A business with unlimited liability, owned and run by one person
What is a partnership?
A business with unlimited liability, owned and run by two or more people
Define limited liability
When liability is limited to the amount a shareholder invested
What is liability
The responsibility of the owner for the debts of the business
Define a private limited company (PLC)
A company with limited liability and private shareholders
Define a public limited company
A company with limited liability and shares quoted on stock exchange available for public to buy
What is internal and external growth?
Internal - expanding the business within
External - a business grows by joining another business
Define integration
When two businesses join together
What is a merger?
Two businesses agreeing to join together
What is a takeover?
When one business buys out the other business
Define franchise
Expansion through selling the right to use a successful business model
What is a holding company?
A company that holds all or most of the shares in other companies
What is an operating company?
A company that produces and trades
What is a subsidiary?
A business that is owned by a holding company
Define infrastructure
The ‘web’ of services that support an economy
