1.4 Types of business organisation

Sole trader

A business owned by one person

Limited liability

Liability of shareholders in a company is limited to any amont they invested

Unlimited liability

The owner of a business can be held responsible for the debts of the business they own

Partnership

A form of business in which two or more people agree to jointly own a business

Partnership agreement

The written and legal agreement between business partners

Unicorporated business

That does not have a seperate legal identitu. Sole traders and partnership are unicorporated business

Shareholders

Ownerse of a limited company they buy share which represent part-oweship of the company

Private limited company

Business owned by shareholders but they cannot sell shares to the public

Public limited company

Business owned by shareholders but they can sell shares to the pulic and their shares are tradeable on the stock exchange

Annual general meeting (AGM)

A legal requiremnt for all company shareholders may attend and vote on who they want to be on the board of direction for the coming year

Dividends

Pyaments made to shareholder from the profits of a company

Franchise

A business based upon the use of brand names promotional logos and trading methods of an existing successful business.

Joint venture

Two or more business start a new project together sharing capital, risks and profits

Public corporation

A business in public sector that is owned and controlled by the state governments

A business in public sector that is owned and controlled by the state governments

Business objectives

As the aims or gargets that a business works towards

Profit

Total income of a business less total cost

Market share

The percentage of total market sales held by one brand or business

Social enterprise

They has social objectives as well as an aim to make a profit to reinvest back into the business

Stakeholder

Any person or group with a direct interest in the performance and activities of a business

Shareholders

Owners of a limited company they buy shares which represent partownership of the company