IBDP Business Unit 1.2 Key Terms

Cooperatives are for- ______ social enterprises set up, owned and run by their members, who might be employees and/or customers.

• Loss

• Profit

• Revenue

• Sales

A _______ (or corporation) refers to a limited liability business that is owned by shareholders. A certificate of incorporation gives the company a separate legal identity from its owners (shareholders).

Deed of ___________ is the legal contract signed by the owners of a partnership. The formal deeds specify the name and responsibilities of each partner and their proportion of any profits or losses.

• Partnership

• Incorporation

• Cooperative

• Corporation

_____________ means that there is a legal difference between the owners of a company and the business itself. This ensures that the owners are protected by limited liability.

An _______ ______ ________ (IPO) occurs when a business sells all or part of its business to shareholders on a public stock exchange for the first time. This changes the legal status of the business to a publicly held company.

A restriction on the amount of money that owners of a company can lose if the business goes bankrupt, eg. shareholders cannot lose more than the amount they invested in the company.

• Incorporation

• Deed of Partnership

• Limited Liability

• Initial Public Offering

___-____________ _____________ (NGOs) are private sector not-for-profit social enterprises that operate for the benefit of others rather than primarily aiming to earn a profit, such as Oxfam and Friends of the Earth.

A type of private sector business entity owned by 2-20 people (known as partners). They share the responsibilities and burdens of running and owning the business.

• Companies

• Corporations

• Sole Traders

• Partnerships

This sector is the part of the economy run by private individuals and businesses, rather than by the government, such as sole traders, partnerships, privately held companies and publicly held companies.

• Private

• Public

• Government

• Primary

This type of company is a business owned by shareholders with limited liability but whose shares cannot be bought by or sold to the general public on a Stock Exchange.

• Publicly held

• Governmental

• Privately held

• Non-profit