what is business? Flashcards
what is a mission statement?
a statement that informs people with a summary of objectives and aims the business wants to achieves
what are objectives?
specific outcomes that are to be achieved, set at a business level
features of a sole trader…
- full control/ownership
- can keep all profits
- privacy
- unlimited liability
- minimal admin
features of a Private Ltd…
- limited liability
- access to more capital
- more privacy
- shares are less popular to buyers because they can’t be shared on the stock exchange
features of a PLC…
- limited liability
- shares sold on stock exchange
- admin expenses
- must publish documents
what is unlimited liability?
when you have no seperate legal identity
what is limited liability?
when you have separate legal identity and aren’t responsible for any debt, the company is
what is ordinary share capital?
money the business gets from selling shares
what is market capitalisation?
how much a company is worth to buy if it’s a PLC
what is net asset value?
how much value the business has (assets - liabilities)
what are mutual societies?
an organisation run by the members within the service where profits are reinvested not dividend
what is bankruptcy?
a legal status which is applied for when in debt only used for unincorporated businesses (sole trader)
what is liquidation?
the process of turning assets into money when the business is coming to an end
what are some impacts on share price for a PLC?
- state of economy
- performance
- proposed takeovers
- investors expectations
features of capital intensity…
- greater opportunities for economies of scale
- better quality and speed
- lower labour costs
features of labour intensity…
- labour is a flexible resource
- greater risk of problems with employee relationship
- needs for continuous investment in training
