Year 10 - Business Ownership & Location Flashcards
Sole Traders
A business with unlimited liability, owned and run by one person.
Partnership
A business with unlimited liability, owned and run by two or more people.
Private Limited Company
A business with shareholders that has limited liability.
Limited Liability
When liability is limited to the amount a shareholder invested.
Liability
This responsibility of the owner for the debts of the business.
Public Limited Company
Limited liability company with shares quoted on the stock exchange and available to the public to buy.
Shareholders
People and institutions that buy shares in a company and are therefore its owners.
Internal Growth
(Also called organic growth) when a business grows larger from within.
External Growth
When a business grows by joining with other businesses.
Merger
Two businesses agreeing to join together.
Takeover
One business buying another out.
Intergation
The technical term used when two businesses join together.
Franchise
Expansion through selling the right to use a successful business model.
Holding Company
A company that holds all or most of the shares in other companies.
Parent Company
Another name for the top company and trades.
Operating Company
A company that produces and trades.
Subsidiary
A business that’s owned by a holding company.
Infrastructure
The web of services that support an economy.
E.g power, transport, communications.
Bulk Decreasing
Means the good becomes easier to transport once processed.
Bulk Increasing
Means that the good gets bigger or bulkier once processed and becomes harder to transport.
Privatisation
The process of selling business to the private sector.
Economic Charges
Charges for fair use of a product.
