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Business Structure AICE Business
Terms in this set (26)
Primary Sector Business Activity
firms engaged in farming, fishing, oil extraction and all other industries that extract natural resources so that they can be used and processed by other firms.
Secondary Sector Business Activity
firms that manufacture and process products from natural resources, including computers, brewing, baking, and clothes-making and construction.
Tertiary Sector Business Activity
firms that provide services to consumers and other businesses, such as retailing, transport, insurance, banking, hotels, tourism and telecommunications.
comprises organizations accountable to and controlled by central or local government (that state).
comprises businesses owned and controlled by individual or groups of individuals.
production, distribution or trade of goods and services within a geographical location.
economic resources are owned largely by the private sector with very little state intervention.
Command Market Economy
economic resources are owned, planned and controlled by the state (government).
Mixed Market Economy
economic resources are owned and controlled by both private and public sectors.
a business in which on person provides that permanent finance and, in return, has full control of the business and is able to keep all of the profits.
a business formed by two or more people to carry on a business together, with shared capital investment and usually shared responsibility.
a corporate company which has to follow certain rules and regulations.
the only liability or potential loss a shareholder has if the company fails is the amount invested in the company, not the total wealth of the shareholder.
legal identity separate from that of its owners; the company itself can be taken to court, not the owners.
the death of an owner or director does not lead to its break up or dissolution; ownership transfers to the inheritance of the shares.
Private Limited Company
a small to medium sized business that is owned by shareholders who are often members of the same family; this company cannot sell shares to the general public.
a certificate confirming part ownership of a company and entitling the shareholder owner to dividend and certain shareholder rights.
a person or institution owning shares in a limited company.
Public Limited Company
a limited company, often a large business with the legal right to sell shares to the general public- shares prices are quoted on the national stock exchange.
Memorandum of Association
this states the name of the company, the address of the head office through which it can be contracted, the maximum share capital for which the company seeks authorization and the declared aims of the business.
Articles of Association
this document covers the internal workings and control of the business- for example, the names of directors and the procedures to be followed at meetings will be detailed.
common forms of organizations with have certain features; all members can contribute to the running of the business, sharing workload, all members have a vote, and all members share profit/loss.
a business that uses the name, logo and trading systems of an existing successful business.
two or more businesses agree to work closely together on a particular project and create a separate business division to do so.
a business organization that owns and controls a number of separate businesses but does not unite them into one unified company.
a business enterprise owned and controlled by the state - also known as nationalized.
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