chapter 2 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 a public limited company
public limited company plc
a company whose shares are traded on a stock exchange and can be bought and sold by the public
primary sector business activity
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 business activity
firms that manufacture and process products from natural resources, including computers, brewing, baking, clothes-making and construction
tertiary sector business activity
firms providing services to consumers and other businesses, such as retailing, transport, insurance , banking, hotels and tourism
quaternary sector business activity
businesses providing informational services, such as computing , web design, ICT etc
public sector
organisations accountable to and controlled by central or local government (state)
private sector
businesses owned and controlled by individuals or groups of individuals
mixed economy
economic resources are owned and controlled by both private and public 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- also known as a nationalised industry
sole trader
a business in which one person provides the permanent finance and, in return, has full control of the business and is able to keep all of the profit
unlimited liability
business owners have full legal responsibility for the debts of the business
