Unit 1 Section B Flashcards
(15 cards)
stake holders
Individuals or groups that have an interest or concern in the activities and performance of a business. They can include anyone who is affected by or has an interest in the operations of a business, such as employees, customers, suppliers, communities, and even governments. They are not necessarily owners of the business but have a vested interest in its success or failure.
shareholders
Individuals or entities that own shares or stocks in a corporation and have a financial interest in its performance. They are people or organizations that hold equity in a company through the purchase of shares. They invest money in the business with the expectation of receiving dividends and benefiting from increases in the stock price. Their involvement is primarily financial and tied to the business’ profitability and growth.
sole proprietorship
A business owned and operated by one person. A business structure in which a single individual has complete control over all aspects of the business, including profits, decisions, and liabilities.
partnership
A business structure where two or more individuals share ownership and responsibilities. A type of business where two or more people jointly own and manage the operations and profits of the business, sharing both liability and decision-making.
corporation
A business entity that is separate from its owners and is legally treated as a distinct organization. A legal business structure where the business itself is considered a separate entity from the individual owners, offering limited liability protection to shareholders.
limited liability corporation LLC
A hybrid business structure that combines aspects of partnerships and corporations, offering limited liability and operational flexibility. A business structure where owners (called members) have limited liability like a corporation but can manage the business like a partnership.
unlimited liability
A legal structure where the owner of a business is personally responsible for all the debts and obligations of the business. This means that if a business fails or incurs debts, the owner’s personal assets (like their home or savings) could be used to pay off the company’s debts. This is common in sole proprietorships and general partnerships.
franchising
A business model where one party (the franchisor) licenses the right to operate a business to another party (the franchisee) under a brand name. A business arrangement where a franchisee buys the rights to operate a business using a company’s brand, products, and operating methods, often with set guidelines and fees.
cooperative
A business owned and operated by its members, who share profits and decision-making. A type of business where members (usually customers or employees) share in the profits and have a say in the operations, often focused on providing mutual benefits to the members.
non-profit organization
An organization that operates for purposes other than making a profit, usually to serve a public or social cause. A business model that focuses on providing services or benefits to the community or a specific group of people, with any profits reinvested into the organization’s mission rather than distributed to owners or shareholders.
multinational
Involving or operating in several countries.
A multinational business or corporation operates in multiple countries, typically with subsidiaries or branches in various locations.
This usually has a large scale of operations and cater to international markets.
freelance
A work arrangement where a person works independently rather than being employed by a specific company. These people offer their services to multiple clients on a project basis, often with flexibility in terms of hours and location. Freelancing can apply to a variety of industries, such as writing, design, and programming.
competition
The rivalry between businesses offering similar products or services to attract customers. A situation in which businesses or individuals vie for the same customers or market share, aiming to outperform each other in terms of price, quality, or innovation
brand
A name, symbol, or design that identifies and differentiates a company or product. A recognizable symbol, design, or name associated with a company or product that helps create a distinct identity in the marketplace, influencing customer loyalty and perception.
market research
The process of gathering, analyzing, and interpreting data about a market, its consumers, and competitors. A critical process in business where companies analyze trends, consumer behavior, and competition to make informed decisions about product development, marketing, and sales strategies.
