Types Of Businesses Flashcards
Sole trader
Most common form of business ownership where there is one single owner
Partnership
Is a grouping of individuals, usually done to overcome the drawbacks of being a sole trader
Private limited complanies (PLC)
Shares are usually own by the original sole trader and relatives and the can’t be sold on the open market
Public Limited companies
Their shared are valued and traded as stock on the free market. There is a distinction between ownership and control
Cooperatives
All memebes can contribute to running the business and profit is shared equally
Franchises
Is a legal contract where the frinchiser grants the frenchesee the rights to operate under its brand name and business model
Joint venture
When two or more businesses work closely on a project
Social enterprises
Business that aim to make profit in a socially responsible way. The profit is used to benefit soviety, it’s not a charity
Small business
Also knows as microenteprise, these are businesses with few employees, however the amount changes between countries
Family business
Actively owned and managed by two or more members of the same family. They are not size limited
Unlimited liability
The owners possesions and property can be taken to pay off debts of the business
Limited liability
Ownership of the company is divided in shares. Shareholders can only lose the value of their investment and aren’t personally responsible for the business debts
Stakeholder
Individuals or groups that have interest in a company and can affect or be affected by the business operations and performance. They can be internal or external
Shareholders
Individual companies or institutions that own shores in a company’s stocks
Privatization
Process in which land, a business, or a sector goes from being owned and managed by the government to being privately owned
Nationalization
Process in which land, a business or a sector goes from being owned and managed privately to being a public asset under government management
