Untitled Flashcard Set

Companies (corporations)

Business organizations owned by shareholders with limited liability. They include privately held and publicly held companies.

Cooperatives

For-profit social enterprises owned and operated by their members, aimed at creating value for member-owners.

Deed of Partnership

A legally binding contract that outlines the purpose of a partnership, rights of partners, and profit division.

Incorporation (incorporated)

Establishes a legal distinction between company owners (shareholders) and the business entity, protecting owners through limited liability.

Initial public offering (IPO)

The first sale of a company’s shares to the public on a stock exchange, changing its status to a publicly held company.

Limited liability

Legal status protecting business owners from being liable beyond their investment in the business.

Limited partnership

A partnership type where some partners contribute capital and share profits without managing the business, with at least one partner having unlimited liability.

Non-governmental organizations (NGOs)

Non-profit organizations in the private sector that serve societal benefits rather than shareholder profits.

Partnership

A business alliance of 2 to 20 owners who share responsibility for the business.

Private sector

The part of the economy comprised of businesses owned by individuals or groups, not the government.

Privately held company

A business owned by shareholders with limited liability, where shares are not traded on public stock exchanges.

Publicly held company

A joint-stock company whose shares can be bought and sold by the public, without needing approval from current owners.

Public sector

Businesses owned and operated by the government to provide essential services like education and healthcare.

Sleeping partner

An investor in a partnership who does not engage in daily operations or management.

Social enterprises

Revenue-generating businesses focused on social objectives, benefiting the public over private shareholders.

Sole trader (sole proprietor)

A business owned by one individual who has full responsibility for its operation.

Stock exchange

Marketplace for buying and selling shares to the public and other companies.

Unlimited liability

Situation where business owners are personally liable for business debts, potentially requiring personal asset liquidation.