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IB Business Management 1.2: Types of Organizations

Terms in this set (20)

Articles of Association
Document that sets out the internal organization and rules of a limited company. Details might include the powers of each director and voting rules.
Charities
Not-for-profit organizations established to support good causes, from society's point of view.
Company
Refers to a business that is owned by shareholders. It has been issued a certificate of incorporation, giving it a separate legal identity.
Deed of Partnership
Legal contract signed by the owners of a partnership. The formal document will specify the name and responsibilities of each partner and their share of any profits or losses.
Incorporation
Legal difference between the owners of a company and the business itself. This ensure that the owners are protected by limited liability.
Limited Liability
Restriction on the amount of money that owners can lose if the business goes into bankruptcy, they cannot lose more than they invested in the business.
Non-governmental organization (NGO)
Private sector organization that operate for the benefit of others rather than aiming to make a profit.
Partnerships
Form of private sector business owned by 2-20 people. They share the responsibilities and burdens of running and owning the business.
Private Limited Companies
Business owned by shareholders with limited liability but whose shares cannot be bought by or sold to the general public.
Private Sector
part of the economy under the control of private individuals and businesses, rather than the government.
Public limited Companies
An incorporated business organization that allows the general public to buy and sell shares in the company via stock exchange.
Public Corporations
Organizations wholly owned by the government but run as commercial establishments.
Public-private enterprise
Occur when the government creates commercial partnerships with the private sector to provide certain goods or services.
Public Sector
Part of the economy controlled by the government.
Stock Exchange
Market place for trading stocks and shares of public limited companies.
Silent Partner
Refers to investor of a partnership who is not directly involved in the daily running of the business.
Sole Trader
Refers to the self-employed person. He/She runs the business on their own and has sole responsibility for its success or failure.
Unlimited liability
A feature of sole traders and ordinary partners who are legally liable for all monies owned to their creditors, even if this means that they have to sell their personal possessions to pay for this.
microfinance
type of financial service aimed at entrepreneurs of small businesses, especially females and those on low incomes.
cooperatives
for profit social enterprises set up, owned and run by their members, who might be employees and/or customers.
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