Topic 5 - Entrepreneurs And Leaders Flashcards
Entrepreneur
Individuals who typically, set up and run a business and take risks associated with it
Intrapreneur
Employees who use entrepreneurial skills, without having to risk their own money, to find and develop initiatives that will have financial benefits for their employer
Profit maximising
To make as much profit as possible in a certain time period
Profit satisficing
To make enough profit to satisfy the needs of the business owner
Articles of association
A document that provides details of the internal running of a limited company
Certificate of incorporation
A document that declares a business is allowed to trade as a limited company
Co-operative
A business organisation owned by its members, who have equal voting rights
Deed of partnership
A binding legal document that states the formal rights of partners
Franchise
A business model in which a business (the franchisor) allows another operator (the franchisee) to trade under their name
Lifestyle business
A business that aims to make enough money and provide the flexibility to support a particular lifestyle for the owner
Limited company
A business organisation that had a separate legal entity from that of its owners
Aims
What a business tries to achieve in the long term
Objectives
The goals or targets set by a business to help achieve its long term purpose
Sales maximisation
An attempt to sell as much as possible in a given time period
Limited liability
A legal status which means that a business owner is only liable for the original amount of money invested in the business
Limited partnership
A partnership where some members contribute capital and enjoy a share of profit, but do not participle in the running of the business. At least 1 partner must have unlimited liability
Memorandum of Association
A document that sets out the constitution and states external details about a limited company
Online business
A business that uses the online global communications infrastructure of the Internet, as a trading base
Mutual organisation
A business owned by its members, who are customers not shareholders
Partnership
A business organisation usually owned by 2-20 people
Primary sector
Production involving the extraction of raw material from the earth
Secondary sector
Production involving the conversion of raw materials into finished and semi-finished goods
Sleeping partner
A partner that contributes capital & enjoys a share of the profits but takes no active role in running the business
Social enterprise
A business that trades with the objective of improving human or environmental wellbeing e.g. Charities & worker co-operatives
