#steemitschool Business glossary

(source)
sabws.co.za
Hello Everyone

Hope you are having a great day

These are a few definitions that might be useful for you in Business Studies

Private Sector – A company normally ran by a small number of people, usually as a means of an enterprise for profit and is not controlled by the state.

Public Sector – The part of the economy that provides basic government services like the military and education. Eg NHS, Police.

Profit – A financial gain from the amount of money earned taken away from the amount of put in to something.
Money made by a company – Costs = Profit

Sole trader – A business that is ran and owned by one person. They are entitled to all of the profits they make after tax.

Partnership – a legal relationship where two or more individuals own a business as co-owners.

Deed of Partnership – A document that contains an agreement which details the rights and obligations of all the partners taking part in the business venture. It is made to guide the partners in the conduct of business.

Sleeping Partner – Someone who invests in a company and shares the profits but does not take part in any activities in the business.

Unincorporated Business – A privately owned company, most likely owned by one person who has unlimited liability, as the company is not legally registered as a company.

Bankruptcy – A legal action involving a business or person that is not able to pay off outstanding debts (Money they owe).

Limited Liability – Limited liability is when someone’s financial liability is limited to a fixed amount, most commonly a business investment. If a business with limited liability is being sued they are suing the business, not the owners or investors.

Unlimited Liability – The responsibility that partners or sole traders have to pay their debts. They are liable for all of the company’s debts if the company cannot pay.

Royalty – A payment made to the legal owner of the patent, copyright or property by those who want to use it for the purpose of making money.

Multi-national – A business that works in many different countries but managed from one (home) country.
Payment – Is the trade of currency from one company to another.

Privatisation – The transfer of the ownership of a company or property from the government to the private sector. The government is no longer the owner.

Public Limited Company (PLC) – A business where the owners/shareholders are not liable for the business’s debts. Public Limited Companies are big companies whose shares are traded on the stock exchange.

Private Limited Companies (LTD) – A company where the owners/ shareholders are not personally liable for their company’s debts. LTD companies are small companies with shares that are not traded on the stock exchange.

Shareholders – Someone who owns shares in a business. The shareholder, in return for purchasing shares in the the company, is entitled to a percentage of the profits earned and also has a say in how the company is managed.

Franchises – A right granted by the government or a company to an individual or group allowing them to carry out specified business activities. E.G. selling products on the company’s behalf.

Memorandum of association – A document that sets out all the rules which a company must follow to enable them to work.

Thanks For Reading

Matthew