Business Keywords + Definitions 3

Profit

The financial gain a business makes when total revenue is greater than total costs.

Control

The power a business owner or manager has to make decision about how the business is run.

Sole Trader

A business owned and run by one person, who keeps all profit but also takes on all risks.

Objective

The specific goals or targets a business sets to achieve, such as increasing sales, profit or market share.

Unlimited Liability

When the owner of a business is personally responsible for all debts; their personal assets may be used to pay off business debts.

Sleeping Partner

An investor in a business who contributes capital ( money ) but doesn’t take part in the day-to-day running or decision-making of the business.

Unincorporated

A business that doesn’t have a separate legal identity from its owner(s), meaning the owner is personally responsible for all debts.

Franchisee

The individual or business that buys the rights to operate a franchise from the franchisor.