595545
| Question | Answer |
| Franchise | Marketing arrangement not business organisation |
| Franchisor | The established business |
| Franchisee | The person or individual buying the franchise and the right to use products, logos and services |
| Royalty | The payment made to a franchisor based on the profit/sales revenue of the franchise |
| Globalisation | The worldwide interdependence of business activity |
| Multinational Company | A company with facilities in several countries |
| Public Sector | Owned by the local or national government |
| Public corporation | Owned by National government |
| Name two advantages and disadvantages for Multinational Companies | Name two advantages and disadvantages for Franchises |
| Name a Public Corporation | BBC, NHS |
| Incorporation | The complicated legal process of becoming a limited liability company |
| Registrar of Companies | Person responsible in the Uk for maintaining records relating to the activities of plc and ltd. |
| Certificate of Incorporation | Legal document issued by the Registrar of Companies allowing a business to trade as a limited liability business |
| Board of Directors | People elected by shareholders to represent their interests |
| AGM | ANNUAL GENERAL MEETING. held every year(among shareholders) electing board directors and the amount of dividend to be paid |
| Chair of the board of the directors | The person who manages the board of directors |
| Capital | Money raised through share of sales. |
| Issued Share Capital | The amount of share capital issued to investors |
| Minority Shareholders | Own a small percentage of company |
| Major Shareholders | Own a large percentage of the company |
| Instituitonal Investors | Invest money on behalf of themselves or the company. Probably own a large percentage of shares of a company |
| Sole Proprietor | Unincorporated business owned by one person. |
| Start up Capital | money needed to start a business |
| Economies of Large scale production | scale of Business activity increases resulting in a reduction of average costs of production |
| Silent or sleeping Partner | invested money in the business but does not take an active part in running it |
| Deed of partnership | a legal agreement drawn up between the partners of the business stating the responsibilities of the partners and how profits and losses are divided, and how the business operates |
| LLP | Limited Liability Partnership. trades as a partnership but with limited liability. |
| Incorporated | A form of business organisation which is a separate legal entity. Limited liability. Owned by shareholders |
| Unincorporated | Unlimited liability |
| Co-operatives | Trading organisations where a number of independent producers work together |
| Sole Proprietor | One person owns the business |
| Partnership | more than one person(2-20) |
| Unlimited Liability | Owners of the business are liable for the debts |
| Limited Liabilty | Owners does not risk losing personal possessions in order to pay off debts |
| Bankruptcy | Liabilities are greater than assets |
| LTD | Owned by shareholders. |
| PLC | Owned by shareholders . Can sell shares freely on the stock exchange. |
| Insolvency | A limited liability company is said to be insolvent when liabilities are greater than assets |
| Entrepeneur | A person who sees an opportunity and accepts the risks involved in running a business |
| Merger | Two or more business join |
| Take over | Business controls the other business |
| Horizontal | Merger or Takeover involved in industry at same stage of production |
| Vertical | Merger or Takeover in same industry at different stage of production |
| Diversification | Spreading risks by reducing dependance on one particular product or service |
| Conglomerate | Merger or takeover of another business which is involved in a different business activity |
| Footloose | Business is able to locate anywhere |
| Grants | Payment of money for a specific purpose |
| Infrastructure | The name given to basic services needed by a business in order for it to operate effectively. |
| Business Objectives | What the business is trying to achieve |
| Mission Statement | Brief summary of the main objectives a business has |
| Dividend | A payment made to shareholders from the profits (plc or ltd) |
| Market Share | Amount of market that a business controls |
| Private Sector | OWNED BY PRIVATE INDIVIDUALS e.g.- sole traders. partnerships, plc and ltd |
| Public Sector | owned by local or national government. |
| Public corporation | owned by national government |
| Stakeholders | has an interest in the business |
| Chain of production | The process of a product starting as a raw material and then being serviced in some way in the tertiary section. |
| Primary Sector | The first stage . Involving the extraction of raw materials. |
| Secondary Sector | Second stage. Raw materials are manufactured into finished products. |
| Tertiary Sector | Third Stage Service is provided |
| Specialisation | Business focuses on one particular activity |
| Added Value | Increases vale of a product |
| De industrialisation | The reduction of importance of the secondary sector of business activity in a country |
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