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Business Key Terms

Capital: he wealth, whether in money or property, owned or employed in business by an individual, firm, corporation, etc.

Discount: to purchase or sell (a bill or note) before maturity at a reduction based on the interest for the time it still has to run.

Division of labour:

Finance: the management of revenues; the conduct or transaction of money matters generally, esp. those affecting the public, as in the fields of banking and investment.

Operating capital: capital available for the operations of a firm (e.g. manufacturing or transportation) as distinct from financial transactions and long-term improvements

Private sector: the area of the nation's economy under private rather than governmental control.

Public sector: the area of the nation's affairs under governmental rather than private control.

Sole proprietor:Sole owner of a business; a self-employedperson such as a grocer, plumber, or taxi driver. He or she directs the affairs of the enterprise, proprietorships and general partnerships. The ability to limit the amount of liability to which an owner is subject is a major reason for the formation of corporations and limited partnerships.
bears its risks and losses, and takes the profits and benefits. Also called sole trader.

Sole trader:

Specialization:Agreement within a community, group, or organization under which the members most suited (by virtue of their natural aptitude, location, skill, or other qualification) for a specific activity or taskassume greater responsibility for its execution or performance.

Start-up capital:

Unlimited liability: The liability of the owner of a business for all the obligations of the business. An owner's personal assets can be seized if the business's assets are insufficient to satisfy claims against it. The placement of personal assets at risk is a great disadvantage of

Deed of partnership:

Limited partner: a partner whose liability for the firm's debts is limited to the amount that...