Glossary BA: Organising Business

 

Key Term

Definition

business

Any activity that seeks profit by providing goods and services to others.

company

An organisation founded by at least two persons in order to achieve a common goal with joint efforts.

partnership

A nonincorporated business enterprise with two or more owners.

corporation

A legal entity created by the state, whose assets and liabilities are separate from its owners.

simple partnership

A partnership for common non-business-oriented goals.

general partnership

A partnership in which all owners share in operating the business and in assuming liability for the business's debts.

limited partnership

A form of business organisation that has one or more general partners who manage the business and have unlimited liability for the obligations of the business and one or more limited partners who do not manage and have limited liability.

cooperative

A business owned and controlled by the people who use it-producers, consumers, or workers with similar needs who pool their resources for mutual gain.

association

A form of organising persons for not-profit-related actions.

joint stock corporation

A capital-oriented form of business corporation according to Swiss company law.

limited liability company

A form of organisation that is neither corporation nor partnership, but has elements of both.

sole proprietorship

A form of business under which one person owns and controls the business.

sole trader

The owner of a sole proprietorship.

general partner

An owner (partner) who has unlimited liability and is active in managing the firm.

limited partner

An owner who invests money in the business but does not have any management responsibility or liability for losses beyond the investment.

contractual agreement

A written contract between the partners of a partnership that states the rights and the responsibilities of the partners.

general meeting of shareholders

The annual general meeting of all owners (holders of shares) in order to discuss and take decisions on the strategic management of the joint stock corporation.

shareholder

Also called stockholder. An owner of a corporation, who has no inherent right to manage the corporation but has liability limited to his capital contribution.

board of directors

A group of individuals elected by stockholders to oversee the general operation of a corporation and set long-range objectives.

auditors

The people who review and evaluate the records used to prepare a company's financial statements.

managers

Those individuals in organisations who make decisions about the use of resources and who are concerned with planning, organising, leading, and controlling the organisation's activities to reach its objectives.

partners‘ meeting

The annual general meeting of all partners in order to discuss and take decisions on the strategic management of the limited liability company.

management

A process designed to achieve an organisation's objectives by using its resources effectively and efficiently in a changing environment.

ownership

The property right to things.

liability

The legal duty to repay debts and pay damages in case of torts.

limited liability

Business owners are liable for the firm's debts only to the extent of their investment in the business.

unlimited liability

The responsibility of business owners for all of the debts of the business.

joint venture

A partnership in which two or more companies (often from different countries) join to undertake a major project.

formation

The founding of a company.

share

An equity security, representing a shareholder's ownership of a corporation.

articles of incorporation

A document that must be filed with a secretary of state to create a corporation. Usually, it includes the basic rights and responsibilities of the corporation and the shareholders.

holding company

A corporation whose purpose or function is to own or otherwise hold the shares of other corporations either for investment or control.

subsidiary company

A corporation owned and controlled by another corporation, called a parent corporation.

merger

The combination of two companies to form a new company.

acquisition

The purchase of one company by another usually by buying its stock.

incorporation

The formal act of founding a joint stock corporation.

Commercial Register

The official list about all incorporated businesses, run by the government.

reserves

Money set aside for the case of contingencies.

liquidation

The closing down of a business, normally because it has failed. Typically a last resort, when a rescue or sale has either not been possible or not successful.

winding-up

In partnership and corporation law, the orderly liquidation of the business's assets.

dissolution

In partnership law, the commencement of the winding up process.