Intro to Business - Key Terms Flashcards
Cooperatives
Businesses owned and operated by their members, who share the profits. E..g. builidng companies Glenn Wvyrn Distillery
Company
A limited liability business that is owned by shareholders. A certificate of incorporation gives the company a separate legal identity from its owners (shareholders)
Initial Public Offering
(IPO) when a business sells all or part of its business to shareholders on a public stock exchange for the first time. This changes the legal status of the business to a publicly held company.
Non-Governmental Organizations (NGO)
Organizations independent of government. Non-profit and often have a humanitarian or social purpose. Often receive government funding and cooperate with government.
Partnership
A business owned and run by two or more person who share the profits, often specified in partnership agreement. Unlimited liability.
Primary Sector
the section of the economy that extracts materials or harvest products from the earth, including farming, fishing, forestry and raising livestock
Privately held Company
Limited liability for owners where shareholders cannot resell shares unless first offering them to existing shareholders. Shares cannot be traded on a stock exchange.
Public Sector
The portion of the economy controlled or owned by the government. This may include nationalised industries, state-owned entities or corporations.
Publicly held Company
A corporation that offers limited liability to the owners. The shares of the company are traded in some public exchange. Publicly held companies must disclose/ make public information about the company including audited financial information.
Social Enterprise
Revenue - generating businesses with social objectives at the core of their operations. They can be for profit or non-profit business entities, but all profits or surpluses must be reinvested for that social purpose rather than being distributed to shareholders and owners.
Quaternary Sector
An area of economic activity based on knowledge and the movement of information. Some argue this is part of the tertiary sector. Quaternary sector activities are advanced knowledge- based activities, such as information technology services, consultancy , research and development.
Secondary Sector
Economic activity of producing a finished good, using raw materials or materials from the primary sector. The sector of the economy involving manufacturing
Sole Trader
One owner who usually manages the business. No legal distinction between business and partners.
Stakeholder
A person or organization that affects, or is affected by a business. Stakeholders are often classified as internal versus external, market versus non-market or primary versus secondary.
Tertiary Sector
The service sector of the economy. Services include banking, retail, health care, restaurants, hotels, among many other areas of economic activity.
Unlimited Liability
Owners are legally responsible/ liable for business debts. No legal distinction between owners personal assets and the assets in the business.
