Business Key Words Flashcards
(22 cards)
Sole Trader
a sole trader describes any business owned by one person. A sole trader has unlimitted liability with the business.
Unlimitted liability
This is when the entrepreneur and the business are legally seen as the same. This makes the entrepreneur responsible for all debts.
Partnership
A business owned by two or more people.
Shareholder
A person or organisation that own shares in a limited company.
Private limited company
often a small or medium-sized business owned by shareholders who have unlimitted liability. The company can’t sell shares to general public.
Public limited company
often a large business owned by shareholders with limited liability. The can sell its shares to the general public.
Ordinary shareholders
the owners of a limited company
Limitted liability
When a business has its own legal identity and owners are not responsible for its debts.
Limitted company
A company with its own legal identity.
Dividend
a payment, out of profits, to shareholders as a reward for their investments.
Franchise
a business where entrepeneurs buy the right to use the name , logo and product of an existing business.
Joint Ventures
two or more businesses agree to work together on a project and set up a seperate business for this purpose.
Market share
the revenue of a business expressed as a percentage of total market revenue.
Social enterprise
a business with social objectives that reinvests most of its profits back into the business or into benefiting society at large.
Corporate Social Responsability
business taking responsability for the impact their activities might have on society and the environment
Stakeholder
it’s the same as an owner or an entrepreneur.
Business opportunity
part of a business plan where you find info about the product and why it’s believed people will want to buy it. This part includes a market research.
The Market
part of a business plan where you find info about the current size, the potential for growth and the businesse’s main competitors.
Horizontal integration
Brings together two firms in the same in the same industry and sector.
Forward Vertical integration
Brings together two firms of the same industry but one is customer of the other. Like a shoe maker and a retailer.
Backward vertical sector integration
brings together two firms of the same industry but one is supplier to the other. Like a chocolate maker and a cocoa producer.
Conglomerate integration
bringing together two business that are completely different industries.
