Unit 1 - KEY TERMS FOR TYPES OF BUSINESS ORGANISATION –print out a copy for your file

SOLE TRADERsomeone who owns and controls their own business

UNLIMITED LIABILITYyou must pay off the debts of the business  - even if you have to sell your possessions

LIMITED LIABILITYbusiness owners can only lose what they put into the business

PARTNERSHIP -  a business organisation with between 2 and 200 members

SLEEPING PARTNER - puts money into a business, takes no part in its management, receives limited liability

DEED OF PARTNERSHIP - the legal contract which governs how a partnership will be owned and organised

PRIVATE LIMITED COMPANYa business whose shares can not be advertised or sold on the Stock Exchange

PUBLIC LIMITED COMPANYa business whose shares can be advertised or sold on the Stock Exchange

SHAREHOLDERS - the owners of a company

MANAGERSworkers who are responsible for the day to day running of a company

ARTICLES OF ASSOCIATIONthe internal rules of a company

MEMORANDUM OF ASSOCIATIONhow a company presents itself to the outside world

INCORPORATIONlegal separation in limited companies of the individuals in the company and the company itself.

RETAIL CO-OPERATIVE - a business owned by its customers

WORKER CO-OPERATIVEa business owned, and run, by its workers

FRANCHISEthe right given by one business to another to sell goods or services using its name

FRANCHISEE - the business which buys the use of the name

FRANCHISOR -  the business which sells the use of the name

MULTI NATIONAL COMPANY - a business with branches in more than one country

PUBLIC CORPORATIONa business owned by the government

NATIONALISATIONwhen the government buys a business from the private sector

PRIVATISATIONwhen the government sells a public corporation back to the private sector


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