Business Terms and Structures Vocabulary

Vocabulary flashcards covering business ownership models, e-commerce, insolvency, and market analysis tools.

e-commerce

the buying and selling of goods, services, or information over the internet.

insolvency

a financial state where a business or individual can't pay their debots when they fall due, or when total liabilities exceed total assets.

market mapping

using a graph to plot competitors and their products to understand competitor behaviour and spot a gap in the market.

sole trader

a business owned and managed by a single individual who takes all the profit but bears all the responsibility. Pros include being quick & easy to setup, keeping profit, and making own decisions; cons include unlimited liability, long hours, and high responsibility.

partnership

a business owned by $2-20$ people who share responsibilities, profits and decision-making authority. Pros include combined expertise and shared workload; cons include shared profits, potential disagreements, and unlimited liability.

social enterprises

businesses that trade primarily to achieve social or environmental objectives, while still generating profits that are principally reinvested toward their mission. Benefits include ethical appeal and motivated staff, while drawbacks include divided priorities and difficulty accessing traditional finance.

franchise

a business arrangement where the franchisor (parent company) licenses its business model, brand, and operational system to a franchisee (independent operator) in exchange for initial fees and ongoing royalties.

private limited company (Ltd)

a business owned by shareholders (usually family or friends) where shares cannot be sold to the general public (shareholders must be invited).