Business structure Flashcards
private limited company
a business that is owned by shareholders who are often members of the same family; this company cannot sell shares to the general public
initial public offering (IPO)
an offer to the public to buy shares in public limited company
public limited company
a company whose shares are traded on a stock exchange and can be bought and sold by the public
primary sector
firms engaged in farming, fishing, oil extraction and all other industries that extract natural resources so that they can be used and processed
secondary sector
firms that manufacture and process products from natural resources, including computers, brewing, baking, clothes - making and construction
tertiary sector
firms providing services to consumers and other businesses, such as retailing, transport, insurance, banking, hotels and tourism
quaternary sector
businesses providing information services, such as computing, web design, ICT, management consultancy and R&D
public sector
organisations accountable to and controlled by central or local government
private sector
businesses owned and controlled by individuals or groups of individuals
mixed economy
economic resources are owned and controlled by both public and private sectors
free market economy
economic resources are owned largely by the private sector with very little state intervention
command economy
economic resources are owned, planned and controlled by the state
public corporation
a business enterprise owned and controlled by the state
partnership
a business formed by two or more people to carry on a business together with shared capital investment and usually shared responsibilities
limited liability
the only liability - or potential loss - a shareholders has, if the company fails, is the amount invested in the company, not the wealth of the shareholder
share
a certificate confirming part - ownership of a company and entitling the shareholders owner to dividends and certain shareholder rights
shareholder
a person or institution owning shares in a limited company
Memorandum of Association
this states the name of the company, the address of the head office through which it can be contacted, the maximum share capital for which the company seeks authorisation and the declared aims of the business
Articles of Association
this document covers the internal workings and control of the business, the names of directors and the procedures to be followed at meetings
