A/AS Level Business Studies - Chapter 2 - Business Structure (some A-Level material)
Public corporation
a business enterprise owned and controlled by the state - also known as nationalized industry
Partnership
a business formed by two or more people to carry on a business together, with shared capital investment and, usually, shared responsibilities
Sole trader
a business in which one person provides the permanent finance and, in return, has full control of the business and is able to keep all of the profits
Holding company
a business organisation that owns and controls a number of separate businesses, but does not unite them into one unified company
Franchise
a business that uses the name, logo and trading systems of an existing successful business
Public limited company
a limited company, often a large business, with the legal right to sell shares to the general public - shares prices are quotes on the national stock exchange
Shareholder
a person or institution owning shares in a limited company
Voluntary export limits
an exporting country agrees to limit the quantity of certain goods sold to one country
Mixed economy
economic resources are owned and controlled by both private and public sectors
Command economy
economic resources are owned, planned and controlled by the state
Free-market economy
economic resources owned largely by the private sector with very little state intervention
Primary sector
firms engaged in extracting raw materials to be used and processed by other firms, e.g. farming, fishing
Secondary sector
firms that manufacture and process raw materials, e.g. construction, baking
Tertiary sector
firms that provide services to consumers and other businesses, e.g. retailing, insurance, telecommunications
Quotas
limits on the physical quantity or value of certain goods that may be imported
Free trade
no restrictions or trade barriers exist that might prevent or limit trade between countries
Privatisation
selling state-owned and controlled business organisations to investors in the private sector
Tariffs
taxes imposed on imported goods to make them more expensive than they would otherwise be
Globalisation
the increasing freedom of movement of goods, capital and people around the world
Limited liability
the only liability - or potential loss - a shareholder has if the company fails is the amount invested in the company, not the total wealth of the shareholder
Joint venture
two or more businesses agree to work closely together on a particular project and create a separate business division to do so
Share
a certificate confirming part ownership of a company and entitling the shareholder owner to dividends and certain shareholder rights
Private limited company
a small to medium-sized business that is owned by shareholders who are often members of the same family. This company is unable to sell shares to the general public
Multinational business
business organisation that has its headquarters in one country, but with operating branches, factories and assembly plants in other countries
Private sector
comprises of businesses owned and controlled by individuals or groups of individuals
Public sector
comprises of organisations accountable to and controlled by central or local government
Public-private partnerships
these are government services or business ventures that are funded and managed through a partnership of government and one or more private-sector companies
Articles of Association
this document covers the internal workings and control of the business - for example, the names of directors and the procedures to be followed at meetings will be details
Memorandum of Association
this states the name of the company, the address of the head office through which it can be contacted, the maximum share capital for which the company seeks authorization and the declared aims of the business
Protectionism
using barriers to free trade to protect a country's own domestic industries
