business vocab 2 0.0 / 5 ? Business Studies-IGCSEEdexcel Created by: EnolaCreated on: 05-11-15 07:01 Sole trader It is a business owned and contolled by just one person. 1 of 12 unlimited liability when the owners have to pay back all the depths of the business even if they have to sell their belongings. 2 of 12 limited liablity When the business fails the owners lose all their investment but dont have to repay the businesses depth 3 of 12 economies of scale Those factors that, as a business grows and its output increase, allows the average cost of the business to fall. 4 of 12 diseconomies of scale An increasein the average costs that may occur as a firm's output reaches its maximum capacity level. 5 of 12 partnership a partnership is a group or association between 2 to 10 people, who agree to own and run a business together. 6 of 12 private limited company(Ltd) is limited to who can buy shares in the business 7 of 12 public limited company (PLC) the general public can buy shares in the company as they are sold on the stock market 8 of 12 franchises an already established business will sell the right to use their name and provide their products and services 9 of 12 franchisee is the person who has the money to invest and wants to open a business with less risk involved than normal 10 of 12 franchisor is the company which has the established reputation and wishes to expand. 11 of 12 deed of partnership is a legal document which states partners rights in the event of a dispute. 12 of 12
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