Unit 1.2 Flashcards
Cooperatives
For-profit social enterprises set up, owned and run by their members, who might be employees and/or customers.
Deed of partnership
partnership agreement between the partners of the firm which outlines the terms and conditions of the partnership between the partners. The purpose of a partnership deed is to provide clear understanding of the roles of each partner, which ensures smooth running of the operations of the firm.
Initial Public Offering (IPO)
private company sells shares of its stock for the first time to the public and becomes a public company. When a company makes this transition, it is no longer in the hands of the private owners and investors but is now under public ownership.
Incorporation
A legal difference between the owners of a company and the business itself. (This ensures owners are protected from any loss made by the company)
Limited Liabilty
a restriction on the amount of money that owners can lose if their business goes bankrupt
Limited Partnership
business structure that consists of at least one general partner and one or more limited partners. This structure allows limited partners to invest in a business without being exposed to the same level of risk as general partners
Non-governmental organizations (NGOs)
independent organizations that operate without government control and are typically non-profit. They are usually established to address social, environmental, cultural, or humanitarian issues.
Partnership
Formal arrangement by two or more companies to manage or operate a bushiness and share its profits
Private sector
The part of the economy that is run by individuals and companies, often for profit, rather than the government.
Publicly held company
A publicly held company is a corporation whose ownership is distributed among general public shareholders through the trading of its shares on stock exchanges. A public company is required to disclose its results of operations, financial condition, and other mandated business information regularly to the public.
Privately held company
A private company is a firm held under private ownership. Private companies may issue stock and have shareholders, but their shares are not issued through an initial public offering (IPO) and do not trade on public exchanges.
Public sector
the part of an economy that is controlled by the government.
Social enterprises
A social enterprise, or social business, is a business designed to achieve specific social objectives as its primary purpose. Social enterprises strive to maximize profits while also maximizing positive impacts on society and the environment. The profits generated are primarily used to fund social programs.
Sleeping partner
partner who do not actively take part in the running of the partnership but have a financial stake in it.
Sole trader (sole proprietor)
unincorporated business with one owner. There is no legal separation between the company and the owner, who receives all profits but is liable for all debts and losses.
