Business Topic 1.4 Test Revision

Liability

Refers to who is responsible for a business's debts, especially when the business fails.

Limited liability

If your business gets into debt, you will lose your investment but are not responsible for repaying the debt.

Unlimited liability

You are responsible for repaying all business debts; personal belongings may be at risk.

Sole trader

An individual who owns and runs their own business, the simplest form of business.

Partnership

A business arrangement where two or more individuals combine resources and share profits and losses.

Private Limited Company (LTD)

A type of company owned by shareholders that limits the liability of its owners.

Franchise

A business model where a well-known business sells rights to its brand and operations to another business.

E-commerce

The process of buying and selling products electronically via the internet.

M-commerce

The use of mobile technology, like smartphones and tablets, for buying and selling products.

Marketing mix

The set of marketing tools that a firm uses to pursue its marketing objectives, consisting of 'the 4P's': Product, Price, Promotion, Place.