Unit 1 Flashcards
Private sector
Made up of businesses owned by individuals of groups of individuals
Public sector
Made up of businesses owned by the government
Sole trader
A business that is not registered and owned by just one person
Partnership
Is a business owned by 2 to 20 people
Private limited company (LTD)
Company owned by shareholders. Shares can only be traded privately
Public limited company
Owned by shareholders. Shares are openly traded on a stock exchange
Limited liability
Can only lose the money that you’ve invested
Unlimited liability
One or more individuals are liable for their companies taxation and debt
Incorporation
Business is separate to owners and share holders so they only lose the money the put in
Unincorporated
Business and owners and shareholders are together
Share holders
An owner of shares in a company
Venture capitalist
A private investor that provides capital to companies
Stock exchange
The level of prices in a particular stock exchange
Flotation
Offering a company’s shares for sale on the stock market for the first time
B2B
Business to business
B2C
Business to customers
External factors that affect business
Economic factors
Demographic factors
Environmental and social factors
Market factors
What is the acronym for the range of influences in the external environment that affects all businesses
PESTLE
What is interest rate
It is the cost of borrowing money & the reward for lending money
Examples of social factors
Buying habits
Consumer tastes
Cultural and social trends
Demographic changes
Technological factors
Innovation
Social media
Data storage
Legal factors and environmental factors
Legal
Legislation
Health and safety
Employment law
Environmental
Fair trade
Impact
Carbon emissions
CSR
