Key terms(1.5.4) Flashcards
Franchise definition
a business is allowed to trade using the brand/logo/business model of an existing firm in return for a fee/royalty
Franchising definition
a type of business where a business operator (franchiser) allows others (franchise) to trade under its name for a fee
Lifestyle business definition
a business set up with the aim of making no more than a set level of income from which to enjoy a particular lifestyle
Partnership definition
a type of business ownership/organisation owned by two or more people
Private limited company definition
a small to medium sized business usually run by the family that owns it
shares are sold to friends family and business associates and it has limited liability
Public limited company definition
a business with limited liability whose shares are publicly traded on the stock market
Social enterprise definition
a business that has aims/objectives which benefits society and is not for profit/its profits are reinvested into the business/community
Sole trader definition
a business that is owned by one person who has unlimited liability
Stock market flotation definition
when a business sells shares publicly on the stock exchange for the first time
