• A sole trader business is owned and run by an individual. • The money used to start a business is called capital.
• Unlimited liability means that a business owner’s personal property may be seized to pay for the debts of their business.
• A shareholder is a person who owns one or more shares in a company.
• An annual general meeting (AGM) is a gathering of company directors and shareholders that is held every year to discuss the business.
• A private limited company is a business that is owned by between one and 149 shareholders.
• Limited liability means that shareholders are not personally responsible for business debts and can only lose the amount they have invested in the business.
• A public limited company is a business whose shares can be traded on the stock exchange and bought and sold by members of the general public.
• The stock exchange is where shares in public limited companies are bought and sold. • A state-sponsored body is a business that is owned by the government.
• When one organisation controls the supply of a good or service with no competition, it is called a monopoly.
• Privatisation is the sale of a state-sponsored body to the private sector.
• A franchise is a licence agreement that allows a person (the franchisee) to sell an existing business’s (the franchisor’s) goods or services in a particular location, in return for a percentage of the profits.
• A co-operative is a business that is owned by its members and run for their benefit.
• The members of a producer co-operative are people who produce the raw materials that will become the products sold by the business.
• The members of a consumer co-operative are people who want to buy or access its goods or services. • The members of a worker co-operative are the people who work in the business.
Taking stock A
Go to page 113 of your Activities and Accounts Book to check what you have learned in chapter 17.
