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6 Cards in this Set
- Front
- Back
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What is an entrepreneur?
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An entrepreneur is the owner of a firm. His main interest is profit.Entrepreneur: the person who takes all the risk in the company. If the company is small, only the entrepreneur takes risks. If it is big, shareholders and other people do as well.
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What 3 types of firm exist in a mixed economy? Who owns each?
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There are three types of firm in a mixed economy. The Nationalized Industry/Public Corporation which is owned by the government. The cooperatives, which are owned by consumers and workers, and private firms, owned by entrepreneurs.
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What is capital, fixed capital and working capital?
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Capital is the money invested in a business. Fixed capital is money spent on capital goods and Working Capital is the money spent on running the business
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Give the 6 types of businesses and describe each.
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There are 6 different types of business in an economy. The sole trader is owned and run by a single person. He/she is his/her own boss and receives all the profit, they are fully responsible for all tasks and it may be tiring at times. The owner has unlimited liability so he/she risks all their possession in running the business, they are liable to lose everything. Also have no capital.
Partnerships are run by 2 to 20 people. The partners own the company. They have unlimited liability and have to share profits. They may disagree at times too. They also have no capital. Private Limited Companies are owned by 1 or more shareholders. The shareholders receive the profit from the company and have limited liability and cannot be sued since they have a separate legal identity. Shares are sold privately. It is also run by the board of directors Public Limited companies are owned by 1 or more shareholders. The shareholders receive the profit. They also have separate legal identities and have limited liability. Shares are sold on the stock exchange. Company is run by board of directors. Worker cooperatives are owned by workers. They own all the shares and manage the company as well as receiving their own profits. Have limited liability. Consumer cooperatives are owned by its members and the firm is run by managers, they have limited liability and the members receive the profits. Public corporations are owned by the government. The government receives the profit and it cannot be sued, and neither can the firm. The Government minister and a board of directors appointed by him control it. |
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What is a multinational?
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A multi-national is a company that operates in more than one country, but it’s headquarters are located in one country.
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What are public sector organizations?
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Public Sector Organizations are organizations owned and controlled by the government.
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