Ownership Flashcards
What is a soul trader
A person who set up and run the business themselves
What is partnership
business owned by 2 or more people
Limited liability partnership
Partnership where the owners are not responsible for the depts business can not pay
What is limited liability
the owners can only loose what they invested they are not responsible for business depts
What is unlimited liability
Owners are responsible for business depts. if cannot pay they have to sell personal possessions
What is capital
Money invested into the business
What is own savings
Saving the owner has used to start to the business
What is friends and family
Person setting up the business borrow money from friends or family
What is loan
Owner borrow money from a bank
What is crowd funding
Usually online and large number of people give small amounts for usually discounts in return
What is small business grant
Government charity or council give money or equipment to help
What are business angels
Wealthy individuals who invest for a stake of the business
What are initial resources
Money from inside the business
What is retained profit
When the business uses their profit to invest back into the business
What is selling assets
When they sell products owned by the business
What is share issues
Sell shares of business for money
What is overdraft
Using more money that’s in your account
What is new partners
Adding partners so they can add money into the business
What is external resources
Money that come from outside the business
What is Venture capital
People who invest but want their invested back and input on how the business is ran
What is government grants
Fixed amount from the government to help business’s
What is leasing
Renting business equipment
What is hire purchase
When a business pay for equipment in monthly instalments
What is franchise
The original owners idea being granted to someone else
What is a franchisor
Originally business idea owner
What is franchisee
Who buys the original idea
What is a royalty fee
Owner who is granted the original business have to pay back a percentage of profit and annual fee to original owner
What is the promotional mix
Mixture of advertising and sales promotion to attract and retain customers
What is HMRC
Her majesty revenue customer
Government responsible for tax
