2.organisation, Growth And Location Of Business Flashcards Preview

Business Studies GCSE > 2.organisation, Growth And Location Of Business > Flashcards

Flashcards in 2.organisation, Growth And Location Of Business Deck (24):
1

Incorporated

Form of business activity which. Is a separate legal entity. It has limited liability and is owned by shareholders.

2

Unincorporated

Type of business organisation which has unlimited liability

3

Co-operatives

Trading organisations where a number of independent producers work and trade as though they are a single larger business. E.g supermarket.

4

Sole proprietor

Known as sole trader. One person owns the business

5

Partnership

Form of unincorporated business organisation which is owned by more than one person

6

Unlimited liability

Owners of business are liable for its debts.

7

Bankruptcy

Something that affects individuals and unincorporated businesses when liabilities are greater than its assets

8

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

9

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

10

Limited liability

Owner of business does not risk losing personal possessions in order to pay off debts of the business.

11

Insolvency

Limited liability company is said to be insolvent when liabilities are greater than its assets

12

Entrepreneur

Person who sees a business opportunity and accepts the risks involved in running a business

13

Merger

Two or more businesses join together to make one larger business.

14

Take-over

One business buys control of another business

15

Horizontal

Merger or take-over of another business involved in the same industry at the same stage of production

16

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.

17

Diversification

Process of spreading risks by reducing dependence on one particular product or service

18

Conglomerate

Merger or takeover of another business which is involved in a totally different business activity

19

Footloose

Business is able to locate anyway it chooses

20

Uniform business rates

Type of tax paid by businesses to cover the cost of providing local services

21

Grants

Does not usually have to be paid back. Available from EU,central government or local authorities. Given to businesses to improve employment opportunities

22

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

23

Greenfield site

Industrial or commercial development in an area that has previously not been built on

24

Brown field site

Industrial or commercial development that was previously derelict or occupied by another industrial activity.