Business Ownership (Busuiness In The Real World) Flashcards
What is a sole trader?
A sole trader is a business that is owned by one person
They have limited liability
Sole trader pays income taxes on their earnings
What is a partnership?
Type of business between 2 and 20 owners legally
The rules
They agree on a set of rules outlined in a document called deed of partnerships
What is a private limited companies? (LTD)
They have limited liability and can be big or small, they’re known as share holders
What is a public limited companies? (plc)
Shares a sold to the public on stock market
Will have a CEO and a boarder of directors
What are difidends
They’re a sum or money paid regularly by a company to its share holders
What are grants?
A grant is money given to a business usually by th government or lottery fund that does not need to be paid back
Whats an income tax?
Tax that someone pays based on their personal income
What are profit?
The amount of money made after all costs are deducted
Share capital?
Rhe money rasied when a business becomes a public limited company by offering shares in the business in return for capital
What are shares?
A precentage or portion of a company
What are share holders?
A part owner of a private or limited compant
What is survival?
Keeping the business operating for a certain amount of time
What is profit maximisation?
Profit maximisation is a process business firms undergo to ensure the best output and price levels are achieved in order to maximise its returns.
What is growth?
Business growth refers to the increase in a company’s size, revenue, market share, and profitability over time
What is domestic?
Domestic business involves those economic transactions that take place inside the geographical boundaries of a country
What is international growth?
Usually has been attributed to nany fsctors including changes in technology from other countries
What is the increase in market share?
The proportion of total sales in a market made by one business
What is customer satisfaction?
Relies on good customer service
What are social objectives?
Linked to doing things in an ehtical or enviornmentally friendly manner or having a business whose sole purpose is to meet a social need
