chapter 2 business structure Flashcards

1
Q

private limited company

A

a business that is owned by shareholders who are often members of the same family; this company cannot sell shares to the general public

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2
Q

initial public offering IPO

A

an offer to the public to buy shares in a public limited company

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3
Q

public limited company plc

A

a company whose shares are traded on a stock exchange and can be bought and sold by the public

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4
Q

primary sector business activity

A

firms engaged in farming , fishing , oil extraction and all other industries that extract natural resources so that they can be used and processed

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5
Q

secondary sector business activity

A

firms that manufacture and process products from natural resources, including computers, brewing, baking, clothes-making and construction

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6
Q

tertiary sector business activity

A

firms providing services to consumers and other businesses, such as retailing, transport, insurance , banking, hotels and tourism

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7
Q

quaternary sector business activity

A

businesses providing informational services, such as computing , web design, ICT etc

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8
Q

public sector

A

organisations accountable to and controlled by central or local government (state)

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9
Q

private sector

A

businesses owned and controlled by individuals or groups of individuals

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10
Q

mixed economy

A

economic resources are owned and controlled by both private and public sectors

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11
Q

free-market economy

A

economic resources are owned largely by the private sector with very little state intervention

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12
Q

command economy

A

economic resources are owned, planned, and controlled by the state

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13
Q

public corporation

A

a business enterprise owned and controlled by the state- also known as a nationalised industry

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14
Q

sole trader

A

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

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15
Q

unlimited liability

A

business owners have full legal responsibility for the debts of the business

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16
Q

partnership

A

a business formed by two or more people to carry on a business together, with shared capital investment and, usually, shared responsibility

17
Q

limited liability

A

the only liability or potential loss a shareholder has, if the company fails, is the amount invested in the company, not the total wealth of the shareholder

18
Q

share

A

a certificate confirming part-ownership of a company and entitling the shareholder owner to dividends and certain shareholder rights

19
Q

shareholder

A

a person or institution owning shares in a limited company

20
Q

memorandum of association

A

this states the name of the company, the address of the head office through which it can be contracted, the maximum share capital for which the company seeks authorisation and the declared aims of the business

21
Q

articles of association

A

this document covers the internal workings and control of the business, the names of the directors and the procedures to be followed at meetings

22
Q

cooperative

A

a jointly owned business operated by members for their mutual benefit, to produce or distribute goods or services- as in consumers’ cooperatives or farmers’ cooperatives

23
Q

franchise

A

the legal right to use the name, logo and trading systems of an existing successful business

24
Q

franchiser

A

a person that sells the right to open stores and sell products or services, using the brand name and brand identity

25
Q

franchisee

A

a person or business that buys the right from the franchiser to operate the franchise

26
Q

joint venture

A

two or more businesses agree to work closely together on a particular project and create a separate business division to do so

27
Q

social enterprise

A

a business with mainly social objectives that re-invents most of its profits into benefiting society rather than maximising returns to owners