2.organisation, Growth And Location Of Business Flashcards
(24 cards)
Incorporated
Form of business activity which. Is a separate legal entity. It has limited liability and is owned by shareholders.
Unincorporated
Type of business organisation which has unlimited liability
Co-operatives
Trading organisations where a number of independent producers work and trade as though they are a single larger business. E.g supermarket.
Sole proprietor
Known as sole trader. One person owns the business
Partnership
Form of unincorporated business organisation which is owned by more than one person
Unlimited liability
Owners of business are liable for its debts.
Bankruptcy
Something that affects individuals and unincorporated businesses when liabilities are greater than its assets
Private limited company (limited or ltd)
A business owned by shareholders. Normally identified by the word limited or ltd somewhere in the name of the business. Shares are bought and sold with restriction
Private limited company (Plc)
Business owned by shareholders. Shares in business can be bought and sold without restriction. The business must use the words public limited company or Plc somewhere in the name of the business
Limited liability
Owner of business does not risk losing personal possessions in order to pay off debts of the business.
Insolvency
Limited liability company is said to be insolvent when liabilities are greater than its assets
Entrepreneur
Person who sees a business opportunity and accepts the risks involved in running a business
Merger
Two or more businesses join together to make one larger business.
Take-over
One business buys control of another business
Horizontal
Merger or take-over of another business involved in the same industry at the same stage of production
Vertical
Merger or take-over of another business involved in the same industry at a different stage of production. Merger or takeover can be backwards or forwards.
Diversification
Process of spreading risks by reducing dependence on one particular product or service
Conglomerate
Merger or takeover of another business which is involved in a totally different business activity
Footloose
Business is able to locate anyway it chooses
Uniform business rates
Type of tax paid by businesses to cover the cost of providing local services
Grants
Does not usually have to be paid back. Available from EU,central government or local authorities. Given to businesses to improve employment opportunities
Infrastructure
Name given to basic services needed by a business in order for it to operate effectively. For example, roads, power supplies, telephones and water supplies would be included under this heading
Greenfield site
Industrial or commercial development in an area that has previously not been built on
Brown field site
Industrial or commercial development that was previously derelict or occupied by another industrial activity.
