Business Framework Key Words

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Enterprise
A word used to describe the skills and personality of a person that makes them successful in business, such as being determined to succeed and being confident.
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Entrepreneur
A person who takes the risk of starting and running a business. They will have enterprise skills which make them successful in business.
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Factors of Production
Four resources that are essential for business that includes land, labour, capital and enterprise.
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Business Objectives
Business objectives are what the business is trying to achieve. E.g. profit, growth, survival or providing a service. Objectives vary from business to business and will change with time.
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Mission Statement
A mission statement is a brief summary of the main objectives a business or organisation has.
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Stakeholders
An individual or group of people who have an interest in a business, including workers, customers, owners and the local community.
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Private Sector
The part of business activity owned by private individuals. This is the greater part of business activity and includes sole proprietors, partnerships and private and public limited companies.
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Public Sector
The part of business activity controlled by local and central government, including health, education, fire service, police and the Post Office.
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Incorporated
A form of business organisation which is a separate legal entity. It has limited liability and is owned by shareholders.
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Unincorporated
A type of business organisation which has unlimited liability.
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Sole Trader
Also known as a sole proprietor. One person owns the business.
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Partnership
A form of unincorporated business organisation which is owned by more than one person.
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Silent or Sleeping Partner
A person who has invested capital into a business but who does not take an active part in the running of the business.
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Deed of Partnership
A legal agreement drawn up between partners of the business stating the responsibilities of partners (e.g. how profits and losses are to be shared; how the business is to operate).
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LLP
A limited liability partnership. This is a new form of business organisation which trades as a partnership with limited liability.
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Unlimited Liability
Owners of the business are liable for its debts.
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Bankruptcy
Something that affects individuals and unincorporated businesses when liabilities are greater than assets.
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Private Limited Company
A business owned by shareholders. It is normally identified by the word ‘Limited’ or ‘Ltd’ somewhere in the name of the business.
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Public Limited Company
A business owned by shareholders. Shares in the business can be bought and sold without restrictions. The business must use the words public limited company or ‘plc.’ somewhere in the business name.
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Dividend
A payment made to shareholders from the profits made by a private or public limited company.
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Limited Liability
The owner of a business does not risk losing personal possessions in order to pay off the debts of the business.
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Incorporation
The process of becoming a limited liability company.
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Board of Directors
People usually elected by shareholders to represent their interests and make important decisions on how the company is to be operated.
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Capital
Money usually raised through the sale of shares to investors.
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Franchise
A marketing arrangement that allows another business to trade in the same style as an existing business.
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Franchisor
The name given to the person or business who offers to franchise to other businesses its trading methods, products and business logo.
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Franchisee
The name given to a business or person buying a franchise.
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Royalty
A payment made to the franchisor based on the sales revenue of the franchise.
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Social Enterprise
The name given to a business enterprise that is run for the benefit of this community with any profits that are make being put back into community projects.
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Co-operatives
Are by people with a shared interest, to benefit all involved. Each participant has an equal say
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Charities
Organisations that aim to raise money in order to support a cause, such as cancer research or wiping out poverty in third world countries.
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Voluntary organisations
Provide a service to society (e.g. animal welfare groups, Girl Guides, Scouts).
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Other cards in this set

Card 2

Front

A person who takes the risk of starting and running a business. They will have enterprise skills which make them successful in business.

Back

Entrepreneur

Card 3

Front

Four resources that are essential for business that includes land, labour, capital and enterprise.

Back

Preview of the back of card 3

Card 4

Front

Business objectives are what the business is trying to achieve. E.g. profit, growth, survival or providing a service. Objectives vary from business to business and will change with time.

Back

Preview of the back of card 4

Card 5

Front

A mission statement is a brief summary of the main objectives a business or organisation has.

Back

Preview of the back of card 5
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