Ib- Business Management SL-1 Unit 1.2

Paul Hoang Version

What are Cooperatives ?

Cooperatives are for profit social enterprises that are set up AND run by its members

What is a company ?

A company or corporation is a limited liability business that is owned by shareholders and it can be private or public

What is a Deed of Partnership

It is a legal document that is signed by the owners of a partnership . The deed specifies the partners and their indivisual responsibilities

What does a Incorporation mean ?

It means that there is a legal difference the owners of a company and the business itself

this makes sure the owners have limited liability

What is limited liability ?

It is a restriction on the amount of money that the owners of a company can lose if the business goes bankrupt.

shareholders cannot lose more money than they invested inot the comoany

What are Non-Governmental Organizations (NGO’s)

They are a PRIVATE SECTOR not for profit social enterprise that operate for the benefit of others rather than primarily existing to earn a profit

What are partnerships

type of PRIVATE SECTOR business entity owned by 2-20 people who are usually known as partners. Often sharing responsibilities and tasks for the business

What is the private sector

this is part of the economy run by private individuals and businesses rather than by the government.

This includes : sole traders, partnerships , privately held companies and publically held companies

What is a privately held company ?

A privately held company is a business owned by shareholders who have limited liability whose shares CANNOT be bought or sold to the general public

What is a publicly held company

it is a limited liability business that allows shareholders to buy and sell thier stocks publicly.

What is the public sector

Its part of the economy controlled by the government.

Examples : state healthcare education services

What is a sole trader ?

A self employed person who runs the business on their own. They have exclusive responsibility for its success/failure

THIS IS UN-LIMITED LIABILITY

What are Social enterprises

they are revenue generating businesses with social objectives at the core of their operations. They can ne either for-profit or non-profit but all profit surpluses must be re-invested into their targeted social purpose

Unlimited liability

Sole traders and ordinary partnerships who are legally liable for basically paying all the debts of the company if they were to go into debt