SOLE TRADERS, PARTNERSHIPS, SOCIAL ENTERPRISES AND FRANCHISES

Flashcards covering vocabulary terms related to sole traders, partnerships, social enterprises, and franchises.

Private Sector

The part of the economy that is run by individuals and companies for profit, not by the government.

Public Sector

Comprised of organizations that are owned and operated by the government and exist to provide services.

Entrepreneurs

People that set up a business by themselves and are the owners in the private sector.

Innovators

Entrepreneurs try to make money out of a business idea by spotting a gap in the market, a new invention, or carrying out research.

Organisers

Entrepreneurs are responsible for putting together other factors of production such as people and equipment.

Decision Makers

Entrepreneurs make all the key decisions, such as how to raise finance, product design, and prices.

Risk Takers

Entrepreneurs risk losing money they put into the business, but are rewarded with profit if successful.

The Private Sector

Private individuals and firms that are owned by private individuals

The Public Sector

Made up of central government, local government, and businesses that are owned by government

Important Issue

The entrepreneur is personally liable for the debts of a start-up

Unincorporated Businesses

Sole traders and partnerships have unlimited liability

Liability

Private Limited and Public Limited Companies, who have ‘limited liability’

Unlimited Liability

Responsible for ALL debts and Must pay off these debts using their own money if the business cannot afford to pay them

Importance of Limited Liability

An important protection for shareholders in a company, shareholders can only lose the value of their investment

Unincorporated Businesses

These are businesses where there is no legal difference between the owners and the business.

Incorporated Businesses

A business which has a separate legal identity from its owners.

Sole Trader

An individual who may or may not employ other people, but who owns and operates the business by themselves.

Partnerships

Two or more people going into business together ‘carrying on business with a view to profit’.

Deed of Partnership

A legal document that states partners’ rights in the event of a dispute.

Limited Partnerships

Some partners provide the capital to start the business but take no part of managing the business

Franchises

Someone who does not have a business idea wants to run a business and follows a business with a successful idea.

Franchisor

The owners of franchises that have a successful business and allow other people to follow.

Franchisee

People who follow the franchisor's business.

Social Enterprises

Have a clear social and/or environmental mission, generate most of their income through trade or donations, reinvest most of their profits, are majority controlled in the interests of the social mission.

Worker Cooperatives

Businesses in which its employees share ownership.

Charities

Exist to raise money for 'good' causes and draw attention to the needs of disadvantaged groups in society.

Not-for-profit organizations

Organizations with aims that are primarily focused on societal betterment rather than maximizing profits for shareholders.

Entrepreneurship

The process of starting, organizing, managing, and assuming the responsibility for a business.

Co-operative

A business owned and controlled by its members, who use its services.

Limited Liability

When a business has been legally separated from its owners

Unlimited Liability

The business and the owners are regarded as the same legal entity

Sole Proprietorship

A business organization owned and operated by one person

Partnership

A business organization owned by two or more persons

Corporation

A business organization that is owned by stockholders and has rights and responsibilities as if it were a person.

Franchise Agreement

A contractual agreement between a franchisor and a franchisee that allows the franchisee to operate a business using a name and format developed and supported by the franchisor.

Social Enterprise

A business that is motivated by social and ethical concerns, rather than solely by profit.

Co-operative

A business owned and controlled by its members, who use its services.

Limited Liability

When a business has been legally separated from its owners

Unlimited Liability

The business and the owners are regarded as the same legal entity

Sole Proprietorship

A business organization owned and operated by one person

Partnership

A business organization owned by two or more persons

Corporation

A business organization that is owned by stockholders and has rights and responsibilities as if it were a person.

Franchise Agreement

A contractual agreement between a franchisor and a franchisee that allows the franchisee to operate a business using a name and format developed and supported by the franchisor.

Social Enterprise

A business that is motivated by social and ethical concerns, rather than solely by profit.

Entrepreneurship

The process of starting, organizing, managing, and assuming the responsibility for a business.

Not-for-profit organizations

Organizations with aims that are primarily focused on societal betterment rather than maximizing profits for shareholders.

Co-operative

A business owned and controlled by its members, who use its services.

Limited Liability

When a business has been legally separated from its owners

Unlimited Liability

The business and the owners are regarded as the same legal entity

Sole Proprietorship

A business organization owned and operated by one person

Partnership

A business organization owned by two or more persons

Corporation

A business organization that is owned by stockholders and has rights and responsibilities as if it were a person.

Franchise Agreement

A contractual agreement between a franchisor and a franchisee that allows the franchisee to operate a business using a name and format developed and supported by the franchisor.

Social Enterprise

A business that is motivated by social and ethical concerns, rather than solely by profit.

Entrepreneurship

The process of starting, organizing, managing, and assuming the responsibility for a business.

Not-for-profit organizations

Organizations with aims that are primarily focused on societal betterment rather than maximizing profits for shareholders.

Private Sector

The part of the economy that is run by individuals and companies for profit, not by the government.

Public Sector

Comprised of organizations that are owned and operated by the government and exist to provide services.

Entrepreneurs

People that set up a business by themselves and are the owners in the private sector.

Innovators

Entrepreneurs try to make money out of a business idea by spotting a gap in the market, a new invention, or carrying out research.

Organisers

Entrepreneurs are responsible for putting together other factors of production such as people and equipment.

Decision Makers

Entrepreneurs make all the key decisions, such as how to raise finance, product design, and prices.

Risk Takers

Entrepreneurs risk losing money they put into the business, but are rewarded with profit if successful.

The Private Sector

Private individuals and firms that are owned by private individuals

The Public Sector

Made up of central government, local government, and businesses that are owned by government

Important Issue

The entrepreneur is personally liable for the debts of a start-up

Unincorporated Businesses

Sole traders and partnerships have unlimited liability

Liability

Private Limited and Public Limited Companies, who have ‘limited liability’

Unlimited Liability

Responsible for ALL debts and Must pay off these debts using their own money if the business cannot afford to pay them

Importance of Limited Liability

An important protection for shareholders in a company, shareholders can only lose the value of their investment

Unincorporated Businesses

These are businesses where there is no legal difference between the owners and the business.

Incorporated Businesses

A business which has a separate legal identity from its owners.

Sole Trader

An individual who may or may not employ other people, but who owns and operates the business by themselves.

Partnerships

Two or more people going into business together ‘carrying on business with a view to profit’.

Deed of Partnership

A legal document that states partners’ rights in the event of a dispute.

Limited Partnerships

Some partners provide the capital to start the business but take no part of managing the business

Franchises

Someone who does not have a business idea wants to run a business and follows a business with a successful idea.

Franchisor

The owners of franchises that have a successful business and allow other people to follow.

Franchisee

People who follow the franchisor's business.

Social Enterprises

Have a clear social and/or environmental mission, generate most of their income through trade or donations, reinvest most of their profits, are majority controlled in the interests of the social mission.

Worker Cooperatives

Businesses in which its employees share ownership.

Charities

Exist to raise money for 'good' causes and draw attention to the needs of disadvantaged groups in society.