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Business Studies IGCSEPDF 10
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● Business failure:
When a business is unable to continue operating due to lack of finance or poor
performance.
● Sole trader:
A business owned and operated by one person.
● Partnership:
A business owned by two or more people who share profits and responsibilities.
● Deed of partnership:
A legal agreement between partners outlining responsibilities, profit sharing, and
procedures if the partnership ends.
● Unincorporated business:
A business that does not have a separate legal identity from its owner(s).
● Incorporated business:
A business that has a separate legal identity from its owner(s).
● Shareholders:
Individuals or organisations that own shares in a company.
● Dividend:
A payment made to shareholders from a company’s profits.
● Limited liability:
The shareholders’ liability is limited to the amount they invested in the business.
● Unlimited liability:
Owners are personally responsible for all the debts of the business.
● Private limited company (Ltd):
A company that can sell shares privately to friends and family but not to the
general public.
● Public limited company (plc):
A company that can sell its shares to the public and is listed on the stock
exchange.
Franchise:
●
An agreement where a business (franchisor) allows another (franchisee) to
operate under its brand name in return for a fee.
Joint venture:
●
An agreement between two or more businesses to work together on a particular
project and share the profits.
● Public corporation:
A business in the public sector owned and controlled by the government.
● Social enterprise:
A business with social objectives that reinvests profits into achieving these goals
rather than distributing them to owners.