Tier 2 Vocab Flashcards
Risk
the possibility of something bad happening, doing an action that could lead to uncertainty
Rewards
to the financial and non-financial benefits an entrepreneur receives as a consequence of taking a risk in setting up or running a business.
Limited liability
the condition by which shareholders are legally responsible for the debts of a company only to the extent of the nominal value of their shares.
Unlimited liability
Unlimited liability is when one or more individuals are liable for their company’s taxation and debts.
Business partnership
A partnership is a type of business that has between 2 and 20 owners.
Sole trader
a person who is the exclusive owner of a business, entitled to keep all profits after tax has been paid but liable for all losses. A sole trader is a business that is owned and run by one person.
Franchising
A franchise is a joint venture between a franchisor and a franchisee. The franchisor is the original business. It sells the right to use its name and idea. The franchisee buys this right to sell the franchisor’s goods or services under an existing business model and trademark.
Private limited company
a company that is a legal entity in its own right, separate from the identity of its owners, and has special status in law
Public liability company
a business that is legally allowed to sell its shares to the public. Similar to a private limited company (LTD), the members of a PLC have limited liability
Deed of a partnership
A partnership deed is another name for a partnership agreement, and sets out the terms and conditions of a partnership.
Capital
Capital is the money used to build, run, or grow a business.
Capital most commonly refers to the money used by a business either to meet upcoming expenses, or to invest in new assets and projects.
Sleeping partner
a person who invests in a business but does not take a day to day role in the running of that business.
Limited liability partnership
a partnership in which some or all partners have limited liabilities.
Shareholder
Shareholders are owners of the company, technically part-owners if there’s more than one, but they aren’t always involved in the day-to-day running of the business
Dividends
A dividend is a distribution of a company’s earnings to eligible shareholders. Dividend payments and amounts are determined by the company’s board of directors.
Continuity
an organization’s ability to maintain or quickly resume acceptable levels of product or service delivery following a short-term event that disrupts normal operations.
Customer engagement
Customer engagement is the ongoing cultivation of a relationship between the company and the consumer that goes far beyond the transaction.
