IB Buisness 1.02

1.02 vocab.

Public Sector

the part of the economy that involves the transactions of the government

Private Sector

the part of the economy that involves the transactions of individuals and businesses

Sole trader/proprietorship

One owner who controls all aspect of the business and also responsible for all profits and losses

Partnership

A business in which two or more persons combine their assets and skills

Shareholders

Investors who purchase shares of stock in a corporation.

Public Limited Company (PLC)

A limited company, often a large business, with the legal right tom sell shares to the general public. Its share price is quoted on the national stock exchange

Limited Liability Company (LLC)

a form of business ownership that offers both limited liability to its owners and flexible tax treatment

Incorporated (INC)

formed or united into a whole, organized and maintained as a legal corporation

Publicly Held Corporation

A corporation that may have thousands of stockholders and whose stock is traded on a national securities market.

Privately Held Corporation

A corporation that has only a few stockholders and whose stock is not available for sale to the general public.

Share

A certificate confirming part ownership of a company and entitling the shareholder to dividends and certain shareholder rights

Social Enterprise

A business with mainly social objectives that reinvests most of its profits into benefiting society rather than maximizing returns to owners

For-profit social enterprise

An organization which aims to improve human, social or environmental well being while still making a profit.

Financial cooperative

Financial institution where the ethical and social aims are more important than maximizing profits. (Credit unions)

Housing cooperative

Run to provide housing for its members as opposed to providing rent for private landlords.

Workers' cooperatives

Businesses that were owned and operated by its workers. The wages of managers and employees are similar with employment as the priority.

Non-profit social enterprises

similar to normal social enterprise, except they are less willing to earn a profit or surplus. Primary aim is to provide a social service.

non-governmental organization (NGO)

Private organizations that pursue activities to relieve suffering, promote the interests of the poor, protect the environment, provide basic social services, or undertake community development.

Surplus

used to advance the social purpose for which the business was set-up, not distribute to owners.

Charities

non-profit social enterprises that provide voluntary support for good causes