Unit1 Flashcards
Sole trader
A business in which one person provides the permanent finance and, in return, has full control of the business and is able to keep all of the profits
Partnership
A business owned by two or more people (2-20)
Private limited company
A business owned by shareholders with limited liability but whose shares cannot be bought by or sold to the general public. Has Ltd at the end
Public limited company
A limited company whose shares can be freely bought and sold by members of the public. Has plc at the end
Public sector
The part of an economy that is controlled by the government.
Private sector
Businesses not associated with government agencies.
Third sector
Non-profit sector like Charites
Liability
An amount owed by a business
Flat structure
A management structure characterized by an overall broad span of control and relatively few hierarchical levels.
Hierarchal/tall structure?
A pyramid-shaped structure with many levels of responsibility within an organisation
Customer
People who buy goods and/or services
Competitor
Rivals of the business
Suppliers
They provide components/parts and raw materials to the business
Pressure group
A group that applies pressure to businesses and government to change their behaviour
Managers
They are responsible for controlling a group of staff
