Key Words

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  • Created by: eden1
  • Created on: 11-05-15 11:57
Enterprise
the process by which new businesses are formed and new or innovative products, services or processes are brought to the market
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Entrepreneur
the process by which new businesses are formed and new or innovative products, services or processes are brought to the market
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Factors of production
Four resources that are essential for business (land, labour, capital and enterprise)
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Business objectives
What the business is trying to achieve. E.G. profit, growth, survival or providing a service
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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 form of business organisation which is a separate legal entity. It has limited liability and is owned by shareholders.
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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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Insolvency
A limited liability company is said to be insolvent when liabilities are greater than assets.
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Incorporation
The process of becoming a limited liability company.
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Registrar of companies
Person responsible in the UK for maintaining records relating to the activities of private and public limited companies.
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Certificate of incorporation
Legal document issued by the Registrar of Companies allowing a business to trade as a limited liability business.
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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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Annual general meeting
A limited liability company is said to be insolvent when liabilities are greater than assets.
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Chair of the board of directors
The person who takes responsibility for managing the board of directors.
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Capital
Money usually raised through the sale of shares to investors.
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Minority shareholders
Private individuals who may only own a small percentage of the shares of a company.
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Major share holders
These are shareholders who will probably own a large percentage of the shares used by a company.
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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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The co-operative
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

Entrepreneur

Back

the process by which new businesses are formed and new or innovative products, services or processes are brought to the market

Card 3

Front

Factors of production

Back

Preview of the front of card 3

Card 4

Front

Business objectives

Back

Preview of the front of card 4

Card 5

Front

Mission Statement

Back

Preview of the front of card 5
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