Forms Of A Business Flashcards

1
Q

Articles of association

A

A document that’s provides details of the internal running of a limited company

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2
Q

Certificate of incorporation

A

A document that declares a business is allowed to trade as a limited company

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3
Q

Cooperative

A

A business organisation owned by members who have equal voting rights

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4
Q

Deed of partnership

A

A binding legal document that states the formal rights of partners

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5
Q

Franchise

A

A business model in which a business (the franchiser) allows another operator (the franchisee) to trade under their name

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6
Q

Lifestyle business

A

A business that aims to make enough money and provide the flexibility needed to support a particular lifestyle of the owner

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7
Q

Limited company

A

A business organisation that has a separate legal entities from that of its owners

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8
Q

Limited liability

A

A legal status which means that a business owner is only liable for the original amount of money invested in the business

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9
Q

Limited partnership

A

A partnership where some members contribute capital and enjoy a share of profit, but do not participate in the running of the business - at least one partner must have unlimited liability

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10
Q

Mutual organisation

A

A business owned by its members who are customers not shareholders

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11
Q

Online business

A

A business that uses the global communications infrastructure of the internet as a trading base

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12
Q

Partnership

A

A business organisation that is usually owned by between 2-20 people

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13
Q

Primary sector

A

Production involving the extraction of raw materials from the earth

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14
Q

Secondary sector

A

Production involving the conversion of raw materials into finished and semi-finished goods

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15
Q

Sleeping partner

A

A partner that contributes capital and enjoys a share of the profit but takes no active role in running the business

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16
Q

Social enterprise

A

A business that tardes with the objective of improving human or environemnetal well-being

17
Q

Sole trader

A

A business organisation which has a single owner

18
Q

Tertiary sector

A

The production of services in the economy

19
Q

Unlimited liability

A

A legal status which means that the owner of the business is personally liable for all business debts

20
Q

Public limited company

A

A company owned by shareholders where the shares can be traded openly on the stock market

21
Q

Stock market

A

A market for second hand shares

22
Q

Stock market flotation

A

The process of company going public - making shares available to the public for the first time