Flashcards in 2.organisation, Growth And Location Of Business Deck (24):
Form of business activity which. Is a separate legal entity. It has limited liability and is owned by shareholders.
Type of business organisation which has unlimited liability
Trading organisations where a number of independent producers work and trade as though they are a single larger business. E.g supermarket.
Known as sole trader. One person owns the business
Form of unincorporated business organisation which is owned by more than one person
Owners of business are liable for its debts.
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
Owner of business does not risk losing personal possessions in order to pay off debts of the business.
Limited liability company is said to be insolvent when liabilities are greater than its assets
Person who sees a business opportunity and accepts the risks involved in running a business
Two or more businesses join together to make one larger business.
One business buys control of another business
Merger or take-over of another business involved in the same industry at the same stage of production
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.
Process of spreading risks by reducing dependence on one particular product or service
Merger or takeover of another business which is involved in a totally different business activity
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
Does not usually have to be paid back. Available from EU,central government or local authorities. Given to businesses to improve employment opportunities
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
Industrial or commercial development in an area that has previously not been built on