Key Terms Flashcards
Entrepreneur
Someone willing to take risks to achieve business success.
Risk & Reward
Taking risks with money but in return gaining the reward of profit.
Business & Resources
Combining land, labour, capital and enterprise to produce goods.
Fixed Capital
Capital converted to premises machinery, vehicles & equipment.
Working Capital
Used to run business day to day: stock, raw material.
Characteristics of an Entrepreneur
Self confidence, determination, interpersonal skills, ability to learn from mistakes.
Sole Trader
A person who is the exclusive owner of a business.
Unlimited Liability
Debts of business is extended to personal possessions.
Partnership
Business with 2 / more partners
Deed of Partnership
Lays out of rules for running and dissolution of business.
Sleeping Partner
Invests money but takes no part in day to day running.
Limited Liability
Separate legal existence from owners.
LTD
Private business with 2-50 shareholders.
PLC
Public business able to sell shares.
Certificate of Incorporation
Confirms business has legal entity with its own identity.
