Chapter 2 Flashcards Preview

Business Year 1 - Keywords > Chapter 2 > Flashcards

Flashcards in Chapter 2 Deck (10):
1

Sole trader

A business that is owned and managed by one person but it may employ other people

2

Unlimited liability

Occurs when an individual or a group of individuals is personally, responsible for all the actions of their business

3

Market capitalisation

The total value of the issued shares of a public limited company

4

Takeover

Occurs when one company acquires control of another by buying more than 50% of its share capital

5

Privatisation

The process under which the state sells businesses that it has previously owned and managed to private individuals and businesses

6

Incorporation

A process of establishing a business as a separate legal identity that allows it to benefit from limited liability

7

Shareholder

An investor in and one of the owners of a company

8

Limited liability

This means that in the event of financial difficulties, the personal belongings of shareholders are safe

9

Dividend

A share in the profits of a company that are distributed to the holders of certain types of company shares

10

Social enterprise

A business that has social aims and trades in order to benefit the community or society in general