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Flashcards in business and people Deck (17):
1

unlimited liablity

the owner of the business risk losing all of their personal possessions to pay back debt if business fails

2

continuity

when the business is able to continue if something happens to the owner

3

sleeping partner?

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

4

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

5

what is limited liability

NOT being personally responsible for any debts that the business might have. they only lose what they invest

6

what is a multinational

a company that is based in one country but manufactures and sells products in a variety of other countries

7

what are economies of scale?

as input rises costs fall

8

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

9

what are royalty payments?

a payment made to the franchiser based on the sales revenue or profit of the franchise

10

what is a public corporation?

an organisation which is owned by the national government (BBC)

11

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)

12

what are the PIGGS objectives

profit
increased market share
growth
good service
survival

13

what is insolvency?

liabilities are greater than assets

14

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.

15

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

16

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

17

What are the benefits of NOT being part of a trade union?

Employees do not have to pay a fee for subscription