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BM HL 1.2

Terms in this set (20)

charaty
Charities are non-profit social enterprises that provide voluntary support for good causes (from society's point of view), such as protection of children, animals and the natural environment.
cooperative
Cooperatives are for-profit social enterprises set up, owned and run by their members, who might be employees and/or customers.
Company (Corporation)
A company (or corporation) refers to a business that is owned by shareholders. It has been issued a certificate of incorporation, giving it a separate legal identity from its owners.
Deed of partnership
Deed of partnership is the legal contract signed by the owners of a partnership. The formal deeds specify the name and responsibilities of each partner and their share of any profits or losses.
Incorporation
Incorporation means that there is a legal difference between the owners of a company and the business itself. This ensures that the owners are protected by limited liability.
IPO
An initial public offering (IPO) occurs when a business sells all or part of its business to shareholders on a stock exchange for the first time.
Limited Liability
Limited liability is a restriction on the amount of money that owners can lose iftheir business goes bankrupt, i.e. shareholders cannot lose more than they invested in the company.
Microfinance
Microfinance is a type of financial service aimed at entrepreneurs ofsmall businesses, especially females and those on low incomes.
NGO
Non-governmental organizations (NGO) are private sector not-for-profit social enterprises that operate for the benefit of others rather than primarily aiming to make a profit, e.g. Oxfam and Friends of the Earth.
Partnerships
Partnerships are a type of private sector business owned by 2-20 people (known as partners). They share the responsibilities and burdens of running and owning the business.
Private limited company
A private limited company is a business owned by shareholders with limited liability but whose shares cannot be bought by or sold to the general public.
Private sector
The private sector is the part of the economy run by private individuals and businesses, rather than by the government, e.g. sole traders, partnerships, companies and cooperatives.
Public limited company
A public limited company is an incorporated business that allows the general public to buy and sell shares in the company via a stock exchange. All shareholders enjoy limited liability.
Public-private partnerships
Public-private partnerships occur when the government works together with the private sector to jointly provide certain goods or services.
Public sector
The public sector is the part of the economy controlled by the government. Examples include state health and education services, the emergency services and national defence.
Sole trader
A sole trader is a self-employed person who runs and controls the business and is the sole person held responsible for its success (profits) or failure (unlimited liability).
Social Entrepreneurs
Social enterprises are revenue-generating business with social objectives at the core oftheir operations. They can be for-profit or non-profit businesses, but all profits or surpluses are reinvested for that social purpose rather than being distributed to shareholders and owners.
State-owned enterprises
State-owned enterprises are organizations wholly owned by the government.
Stock exchange
A stock exchange is a market place for trading stocks and shares of public Limited companies.

Examples include the London Stock Exchange (LSE) and the New York Stock Exchange (NYSE).
unlimited liability
Unlimited liability is a feature of sole traders and ordinary partnerships who are legally liable for all monies owed to their creditors, even if this means that they have to sell their personal possessions to pay for their debts.
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