business studies chapter 4 definitions. 0.0 / 5 ? Business Studiesbusiness studies chapter 4IGCSECIE Created by: Anusha5Created on: 22-02-16 08:45 Sole trader A type of business organisation run and managed by only one person who takes all decisions and keeps all of the profit. 1 of 13 partnership A business organization run and managed by 2 people who share decision making, workload and profits. 2 of 13 private limited company A limited business run by shareholders who invest in the business and receive the profits, often members of the same friends or family. 3 of 13 public limited company A limited company run by shareholders who receiver all the profits. Its shares are offered to the general public. 4 of 13 Franchises When a company buys the logo, product, and name of a well known brand. 5 of 13 joint venture Two or more businesses agree to work together on a project and set up a different company for this purpose. 6 of 13 public corporation a company owned and controlled by the state. 7 of 13 Unincorporated business A business which does not have a legal identity separate from its owners. The owners have unlimited liability for the debts of the business. 8 of 13 Unlimited liability If a business goes into debts, the owner may have to give up their personal assists in order to compensate for that. 9 of 13 Ordinary shareholders The owners of a limited company who invest in it. 10 of 13 Limited liability the owners of a limited company only risk losing the amount they have invested in the business. 11 of 13 dividends the payment out of profits to shareholders as a reward for investing in the company. 12 of 13 collateral Non-current assests offered as security against borrowing. 13 of 13
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