vocab for different business forms

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private sector organisation
owned and run by private individuals (eg BP, tesco) most aim to make a profit
1 of 15
unincorporated business
there is no distinction in law between the business and the owner so it is the same
2 of 15
incorporated business
the business and the owners have separate legal identity.
3 of 15
limited liability
if the business fails then the owners can only loose the amount of money they have invested into the business
4 of 15
unlimited liability
if your business fails then they can come and take your assets (house, car) to pay for the debts
5 of 15
sole trader
business that is owned by one person that has unlimited liability.
6 of 15
partnership
2 or more owners (this is not in the exam)
7 of 15
private limited company
limited liability and can only sell shares to their friends or family.
8 of 15
public limited company
limited liability and can sell shares to anyone.
9 of 15
dividend
a percentage of the business profits that is paid to its shareholders
10 of 15
market capitalization
value of a company that is traded on the stock market, calculated by multiplying the total number of shares by the present share price.
11 of 15
shareholder
someone that has invested money into the business
12 of 15
non-profit organisations
a business that is not making money for themselves but for a charity or for someone
13 of 15
external environment
what is outside the business and what the business cant control
14 of 15
mutual societies
Profits are usually reinvested to help improve the service, rather than paid out to external shareholders as they would be in a public limited company
15 of 15

Other cards in this set

Card 2

Front

there is no distinction in law between the business and the owner so it is the same

Back

unincorporated business

Card 3

Front

the business and the owners have separate legal identity.

Back

Preview of the back of card 3

Card 4

Front

if the business fails then the owners can only loose the amount of money they have invested into the business

Back

Preview of the back of card 4

Card 5

Front

if your business fails then they can come and take your assets (house, car) to pay for the debts

Back

Preview of the back of card 5
View more cards

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