Unit 22 - Forms Of A Business 1 Flashcards
Def: articles association
Document that provides details of the internal running of a limited company
Def: certificate of incorporation
A document that declares a business is allowed to trade as a limited company
Def: cooperative
Form of social enterprise
A business organisation owned by its members who have equal voting rights
Def: deed of partnership
A binding legal document that states the formal rights of partners
Def: franchise
A business model in which a business allows another operator to trade under their name
Def: lifestyle business
A business that aims to make enough money to provide the flexibility needed to support a particular lifestyle for the owner
Def: limited company
A business organisation that has a separate legal entity from that of its owners
Def: limited partnership
A partnership with some members contribute capital and enjoy a share of profit but do not participate in the running of the business
Def: memorandum of association
A document that sets out the constitution and states key external details about a limited company
Def: mutual organisation
Form of social enterprise
A business owned by its members who are customers not shareholders
Def: partnership
A business organisation that is usually owned by between 2 to 20 people
Def: primary sector
Production involving the extraction of raw materials from the Earth
Def: secondary sector
Production involving the conversion of raw materials into finished and semifinished goods
Def: tertiary sector
The production of services in the economy
Def: sleeping partner
A partner that contributes to capital and enjoys the share of the profit but takes no active role in running the business
