Unit 1 Business Activity
A document setting out a business's objectives and how it will achieve them
A new business
Business expansion without taking over or merging with another business (organic growth)
Business expansion taking over or merging with another business )
"A business owned by one person who is responsible for all decisions, capital invested and risk."
"Two or more people join to set up a business. Shared decision making, capital invested and risk."
Private Limited Company
Incorporated business with shares sold to friends and family. Limited liability.
Public Limited Company
Incorporated business with shares sold to general public. Limited liability.
Two companies share capital and expertise on a project. Share risks and profits.
Buying the license to use another companies logo and sell their products.
No separation between the company and the owners in law
Business is a separate legal entity - separation between owners and the company
Owners responsibility for company debts restricted to what they have invested
Owners personal assets may be taken to pay for debts of the company.
Government owned organisation set up to provide service to the public
Aims or targets a business sets out to achieve
private enterprise which uses profits to persue environmental or social objectives
Individual or group inside the business impacted by the business activity (owners/shareholders, managers, employees)
person or group outside the business impacted by the business activity
capital given by a government to a business to assist with start up costs, innovation or business growth