| A | B |
|---|
| Entrepreneurship | is willingness to take risks and having the flair and skills needed to set up and run a business. |
| Limited liability | means that the most that shareholders can lose, should the company go into liquidation, is the money they have invested. |
| Opportunity cost . | is what a person might have had if the next best course of action had been chosen: it is what they forego |
| Primary sector . | includes agriculture, forestry, fishing and mining. All involve the extraction of natural resources from the land and the sea |
| Private sector . | includes all organisations that are owned by individuals or shareholders. The business objectives of such firms are to survive and make a profit |
| Public sector | includes all organisations that are owned or run by either the local council or the government. |
| Limited Liability | responsibility limited to what amount of money is put in |
| Secondary sector | includes manufacturing and semi-manufacturing. |
| Tertiary sector . | includes all services such as banking, insurance, shops etc |
| Sole trader | A one person business |
| Unlimited liability | Responsibility for debts of the business |
| Memorandum of Association | Document that outlines the external information about the company |
| Articles of Association | Document which outlines the internal rules of the company |
| Franchise | the right to trade under an established name |
