business structure

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unlimited liaability
the owners of the business are held responsible for the debts of the business, meaning their personal assets are at risk.
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limited liability
the only liability, or potential loss, a shareholder has if the company fails is the amount invested in the company, not the total wealth of the shareholders.
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sole trader
a business in which one person provides the permanent finance and, in return, has full control of the business and is able to keep all of the profits
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parntership
a business formed by two or more people to carry on a business together, with shared capital investment and, usually, shared responsibility. Partners are bound by the terms of the Partnership Act 1890.
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sleeping partner
a partner who usually supplies the business with capital, however they do not have an active role in running the business. These have limited liability.
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deed of partnership
provides agreement issues, such as voting rights, the distribution of profits, the management role of each partner and who has the authority to sign contracts.
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share
a certificate confirming part ownership of a company and entitling the shareholder owner to dividends and certain shareholder rights
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shareholder
a person or institution owning shares in a limited company
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limited companies
incorporated business with limited liability, a separate legal personality and continuity of a business. In setting up, these must register with the Registrar of Companies at Companies House.
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articles pf association
Details the internal workings of the business and control of the business
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private limited companies
an incorporated business that is owned by shareholders but does not have the legal right to offer shares for sale to the public
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public limited companies
an incorporated business that has the legal right to offer shares for sale to the public. Shares of these companies are listed on the Stock Exchange
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seperate legal identity
the company is recognised in law as having a legal identity separate from that of its owners
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cooperatives
business organisations owned and controlled by a group of people to undertake an economic activity for mutual benefit.
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consumer cooperatives
members buy goods in bulk, sell them, and divide the profits between members
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worker cooperatives
workers buy the business and run it; decisions and profits are shared by the members.
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producer cooperatives
producers organise distribution and sale of products themselves
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franchises
a business that uses the name, logo and trading systems of an existing successful business; based upon the purchase of a franchise licenser from the franchiser. Franchise businesses have a lower failure rate than non-franchise firms.
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joint venture
where two or more businesses agree to work closely together on a particular project and create a separate business division to do so.
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holding companies
a business organisation that owns and controls a number of separate businesses, but does not unite them into one unified company. They often have separate businesses in different markets altogether. The holding company has diversified interests
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public corporations
businesses enterprise owned and controlled by the state. They often do not have profit as a main objective.
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family owned business
businesses actively owned and managed by at least two members of the same family
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stakeholders
individuals or groups that have a direct interest in the activities of a business. Stakeholders can influence what a business does, and as they will be affected by the business, they will try to get the business to do what they want.
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stakeholder theory
the view that businesses and their managers have responsibilities to a wide range of groups, not just shareholders
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Other cards in this set

Card 2

Front

the only liability, or potential loss, a shareholder has if the company fails is the amount invested in the company, not the total wealth of the shareholders.

Back

limited liability

Card 3

Front

a business in which one person provides the permanent finance and, in return, has full control of the business and is able to keep all of the profits

Back

Preview of the back of card 3

Card 4

Front

a business formed by two or more people to carry on a business together, with shared capital investment and, usually, shared responsibility. Partners are bound by the terms of the Partnership Act 1890.

Back

Preview of the back of card 4

Card 5

Front

a partner who usually supplies the business with capital, however they do not have an active role in running the business. These have limited liability.

Back

Preview of the back of card 5
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