Chapter 3

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Domanda Risposta
Legal status
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position defined by law
Innovator
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someone who introduces changes and new ideas
Labour
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people employed in business/ used in production
Unincorporated
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businesses where there is no legal difference between the owner and the business
Incorporated
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businesses that have a separate legal identity from its owners
Sole trader
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business owned by a single person
Unlimited liability
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owner of a business is personally liable for all business debts
Partnership
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business owned by anything between 2 and 20 people
Deed of partnership
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binding legal document that states the formal rights of partners
Limited partnership
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partnership where some partners contribute capital and enjoy a share of profit but do not take part in running the business
Limited liability
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business owner is only liable for the original amount of money invested in business
Audits
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official examinations of a company’s financial records in order to check that they are correct
Comply
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to do what you have to do or are asked to do
Franchise
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structure in which a business allows another operator to trade under their name
Merchandise
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goods that are being sold
Social enterprise
being
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business that aims to improve human or environmental well
Cooperative
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company, factory or organisation in which all the people working there own equal share of it
Consumer cooperatives
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cooperative that is owned by its customers
Retail cooperative
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cooperative of retail members who often work together to assert their purchasing power
Worker cooperative
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cooperative owned by its employees
Charities
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organisations that give money, goods or help to people who are poor, sick or in need of help
Accountable
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responsible for the effects of your actions and willing to explain or be criticised for them
Transparent
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language or information that is clear and easy to understand
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