KEY TERMS Flashcards
what is UNLIMITED LIABILITY?
●the business owner is personally responsible for all the debts of the business
what is LIMITED LIABILITY?
●shareholders are legally responsible for the debts of a company.
what is a SOLE TRADER?
a self-employed person who owns and runs their own business as an INDIVIDUAL
what is a PARTNERSHIP?
●a legal agreement between 2 or MORE entities that determines shared ownership & operation of a business.
what is a PRIVATE LIMITED COMPANY?
●a privately held business entity by private stakeholders
what is a PUBLIC LIMITED COMPANY (PLC)
●a business that’s managed by directors & owned by shareholders.
what is an ENTREPRENEUR?
An entrepreneur is a risk-taker who is willing to set up a business venture.
what is an INTRAPRENEUR?
An Intrapreneur is someone within the business that takes risks in an effort to solve a given problem. They bring innovation to existing businesses rather than to business start ups.
- SELF-DRIVEN
- PROACTIVE
- ACTION-ORIENTED
what is PROFIT MAXIMISING?
profit can be a major motivation and is the difference between sale revenue and costs; it rewards successful entrepreneurs for their hard work so they make as much profit as possible.
what is PROFIT SATISFICING?
entrepreneurs that aren’t solely motivated by the size of profits. They may not be interested in taking on the additional risk.
what is a SOCIAL ENTREPRENEUR?
a person who establishes an enterprise with the aim of solving social problems or affecting social change
what are NOT-FOR-PROFIT businesses?
an organisation that doesn’t generate profit for their owners.
what is FRANCHISING?
a business that gives the right to another person/business to sell goods/services using its name.
what is LIQUIDITY?
a measure of a company’s ability to pay off its short term liabilities
what is DELEGATION?
the transfer of authority/responsibility for specific activities and tasks within a business from one individual to another.
