key terms Flashcards
what is a partnership?
a business organisation that is usually owned between 2 - 20 people
what is a sleeping partner?
a partner that contributes capital and enjoys a share of the profit but takes no active role in running the business
what is a social enterprise?
a business that trades with the objective of improving human or environmental well-being
what is meant by unlimited liability?
a legislation which means that the owner of the business is personally liable for all the business debts
what is a deed of partnership?
a binding legal document that states the formal rights of partners
what is a franchise?
a business model where the franchisor allows another operator franchisee trade under their name
what is meant by a lifestyle business?
a business that aims to make enough money and provide that flexibility needed to support the particular lifestyle of the owner
what is limited company?
a business organisation that has a separate legal entity from that of its owners.
