Flashcards in business and people Deck (17):
the owner of the business risk losing all of their personal possessions to pay back debt if business fails
when the business is able to continue if something happens to the owner
they invest money into the business but do not take part in the day to day running of the company, or in any decision making
3 things included on a deed of partnership
1. provides information on job roles
2. states how profits and losses will be shared
3. includes how much each partner invested
what is limited liability
NOT being personally responsible for any debts that the business might have. they only lose what they invest
what is a multinational
a company that is based in one country but manufactures and sells products in a variety of other countries
what are economies of scale?
as input rises costs fall
what is a franchise?
when an established business (franchisor) sells to individuals (franchisees) the right to use its products, services and logo - usually in a SELECT LOCATION
what are royalty payments?
a payment made to the franchiser based on the sales revenue or profit of the franchise
what is a public corporation?
an organisation which is owned by the national government (BBC)
what is a social enterprise?
a business with primarily social objectives. whose profit is mainly
reinvested back into the business or the local community (oscar's charity)
what are the PIGGS objectives
increased market share
what is insolvency?
liabilities are greater than assets
What are trade unions?
a group of workers who join together in order to protect their own interests and to be more powerful when negotiating with their employers.
What are the aims of trade unions?
Improving pay and working conditions, support training and professional development of its members, and to ensure that the members' interests are considered by the employers
What are the benefits of being part of a trade union?
Employers hear concerns of employees, they are able to act as a pressure group in order to make changes. They may also organise industrial action