Forms Of A Business Flashcards
Articles of association
A document that’s provides details of the internal running of a limited company
Certificate of incorporation
A document that declares a business is allowed to trade as a limited company
Cooperative
A business organisation owned by members who have equal voting rights
Deed of partnership
A binding legal document that states the formal rights of partners
Franchise
A business model in which a business (the franchiser) allows another operator (the franchisee) to trade under their name
Lifestyle business
A business that aims to make enough money and provide the flexibility needed to support a particular lifestyle of the owner
Limited company
A business organisation that has a separate legal entities from that of its owners
Limited liability
A legal status which means that a business owner is only liable for the original amount of money invested in the business
Limited partnership
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
Mutual organisation
A business owned by its members who are customers not shareholders
Online business
A business that uses the global communications infrastructure of the internet as a trading base
Partnership
A business organisation that is usually owned by between 2-20 people
Primary sector
Production involving the extraction of raw materials from the earth
Secondary sector
Production involving the conversion of raw materials into finished and semi-finished goods
Sleeping partner
A partner that contributes capital and enjoys a share of the profit but takes no active role in running the business
