Business Activity (Eduqas)

Partnership

• A business owned by one person

• A business owned by two or more people

• A type of corporation

• A non-profit organization

Business aims

• General goals for a business such as growth and survival

• Maximizing profits at all costs

• Reducing employee turnover

• Increasing market competition

A deed of partnership

• A legal document that transfers ownership of property.

• An agreement between partners that sets out rules of partnership, for example how profits are distributed.

• A contract that outlines the responsibilities of employees.

• A formal agreement to dissolve a partnership.

Co operative

• owned and run by its members (worker or consumer)

• a business owned by a single individual

• a non-profit organization

• a government-run entity

Stakeholder

• Individuals and organizations that have an interest in a business.

• Only internal individuals who work within a company.

• External parties that have no impact on the business.

• Individuals who are only affected by the business's financial performance.

Backwards vertical

• Business joins / bought by another business behind them in supply chain eg supplier

• A strategy where a business expands its operations to include more stages of production

• A method of reducing costs by outsourcing production to other countries

• A type of merger where two companies in the same industry combine

Limited liability

• Business is liable for any debt the business occurs

• Owners are personally liable for business debts

• Business debts are shared among all shareholders

• Business is exempt from paying any debts

Unlimited liability

• Personal possessions of owners are at risk if a business goes into debt

• Owners are protected from personal loss in case of business failure

• Business debts are limited to the amount invested in the company

• Only the business assets are at risk in case of bankruptcy

Sole trader

• A business owned and run by one person

• A partnership between two or more individuals

• A corporation owned by shareholders

• A non-profit organization

Private limited company (LTD)

• A business owned by family and friends shares not sold publicly

• A company that can sell shares to the general public

• A business that is owned by a single individual

• A corporation that is publicly traded on the stock exchange