Legal Structures Flashcards
What is the private sector?
A business that is owned by private individuals.
What is the public sector?
Businesses that are owned by central government and local government.
What is a limited company?
A company that is owned by shareholders but run on a day to day basis by directors.
What is a franchise?
A business where the franchisor grants a license to a company so they can stell their product or idea.
What is a limited liability partnership?
The partners in the organisation are not personally responsible for the business’s debts if they cannot be paid.
What is a private limited company?
They are owned by between 2 to 50 shareholders and the liability of the shareholders is limited. So they can only lose the money they invested.
What is delayering?
When businesses remove layers of their hierarchy to make communication more efficient.
What are redundancies?
When a business intends to reduce its number of workers to save money or make communication more fluent.
What is reorganisation?
When a business chooses to reorganise its business structure or hierarchy.
