Chapter 1.2 Flashcards Preview

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Flashcards in Chapter 1.2 Deck (19)
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1
Q

Unincorporated

A

owner is the same legal entity as the business - sole trader bears full responsibility for all losses/liability if business collapses

2
Q

Partnership

A

profit-seeking business owned by two or more persons (for ordinary partnerships, the maximum number of owners is 20)

3
Q

Silent partners

A

do not actively take part in the running of the partnership but have a financial stake in it - eligible for a portion of the profits

4
Q

Deed of partnership

A

legal contract signed by the owners of a partnership - specify the name and responsibilities of each partner and their share of any profits or losses

5
Q

Companies

A

a business that is owned by shareholders - issued a certificate of incorporation, giving it a separate legal identity from its owners(shareholders)

6
Q

Board of director

A

person elected by shareholders to run the company on their behalf

7
Q

Private limited company

A

a company that cannot raise share capital from the general public - shares sold to private family members and friends (many private limited company are run as family businesses) (ex. Chanel, IKEA)

8
Q

Public limited company

A

a company that is able to advertise and sell its shares to the general public via stock exchange (ex. Samsung, Nike, Microsoft)

9
Q

Initial public offering (IPO)

A

when a business sells all or part of its business to shareholders on a stock exchange for the first time

10
Q

Limited Liability

A

restriction on the amount of money that owners can lose if their business goes bankrupt

11
Q

Cooperatives

A

for-profit social enterprises set up, owned and run by their members, who might be employees and/or customers - three main types: consumer cooperatives, worker cooperatives, producer cooperatives

12
Q

Microfinance

A

type of financial service aimed at entrepreneurs of small businesses, especially females and those on low incomes (ex. help women in Vietnam who make and sell bamboo products)

13
Q

Public-private partnerships

A

when the government works together with the private sector to jointly provide certain goods or services (ex. London Olympic Stadium, HK Disneyland, WHO)

14
Q

NGO

A

non-profit social enterprise that operates in the private sector that operate for the benefit of others rather than primarily aiming to make a profit (ex. SPCA, Unicef) - Operational NGO and advocacy NGO

15
Q

Charities

A

non profit social enterprise that provide voluntary support doe good causes (ex. Make a Wish, WWF)

16
Q

Private sector

A

part of the economy run by private individuals rather than by the government (ex. sole traders, partnership)

17
Q

Public sector

A

part of the economy controlled by the government (ex. national defence, education service)

18
Q

Social enterprises

A

revenue generating business where all profits or surpluses are reinvested for that social purpose rather than being distributed to shareholders and owners

19
Q

Sole trader

A

an individual who runs and owns a personal business (the owner is held responsible for its success or failure/this is the most common type of business ownership) (ex.self-employee decorators,plumbers, photographer)