MASE Business Notes 2024/2025

A business structure where two or more individuals agree to run a business together, sharing capital, responsibilities, and profits.

A legal document outlining the terms and conditions of a partnership, including capital contributions, responsibilities, and profit sharing.

A business where the owner has complete control, enjoys all profits, and bears all the risks.

The legal responsibility of a business owner to pay all debts, even if it means using personal assets.

A business structure where the business is separate from the owner's personal assets, meaning the owner is not personally liable for business debts.

The ability to specialize in different areas, leading to greater efficiency and expertise.

The sharing of profits amongst partners, usually based on the partnership agreement.

The potential for disagreements or conflicts between partners, which can affect business operations.

A way to measure business size by counting the number of people working for the company.

A good method to compare similar companies, considering the value of goods or services produced.

Measures the total amount of money invested in a business, including capital equipment and assets.

Often used when comparing retail businesses, this measures the total value of products sold.

The advantages of a business growing larger, including increased profits and potential cost reductions.

A situation where the average cost per unit decreases as a business produces more, often leading to higher profits.

Firms that utilize extensive automation and capital equipment to produce goods, often employing a smaller workforce.

A business strategy focused on growing the size and scale of operations.

A company exists separately from its owners and continues operating even if an owner dies. It can enter contracts, and its accounts are kept distinct from the owners' personal finances.

The owners of a company, who have invested in the business by purchasing shares.

Payments made to shareholders from the company's profits after taxes. These are the rewards for investing in the company.

A company that is owned by a limited number of shareholders, often family members. They cannot sell their shares publicly.

The company continues to exist even if an owner leaves or dies, ensuring business continuity.

The company can enter into contracts and agreements in its own name.

Owners retain control over the company by holding the majority of shares.

When a business expands its operations into new areas or markets, thereby spreading its risk and potentially increasing its profit opportunities.

The difficulties that can arise when a business grows bigger, such as making decisions more complex, managing more people, and coordinating with a larger number of departments.

A business strategy that involves dividing a large company into smaller, more manageable units, often with independent decision-making capabilities.

A person who takes the risk of starting and running a new business, often with a lot of initiative and creativity.

A strategy where a business grows by acquiring or merging with another business, expanding its reach beyond its current operations.

A business strategy where a company expands its existing operations without acquiring other businesses. This growth is often funded by profits from the company's current operations.

A combination of two or more businesses where they agree to join their operations to form a single, larger entity.

A situation where one business takes complete ownership of another business, absorbing it into its own operations.

A type of merger where two businesses in the same industry and at the same stage of production combine their operations. This can lead to a reduction in competition and increased market share.

A type of merger where a business combines with another business at a different stage of production in the same industry. It can occur either forward or backward.

A merger where one company acquires another company in a completely different industry. This is also known as diversification.

A business strategy where a company expands its reach and operations by taking over or merging with other businesses. This can include horizontal, vertical, or conglomerate integration.

A business strategy focused on increasing the influence a company has over its suppliers, making them more eager to sell to the company. This can be achieved through a larger market share, which creates value for the supplier by guaranteeing them consistent sales.

A business strategy focusing on increasing influence over customers, often by setting higher prices. This enables the company to generate higher returns for its shareholders. However, it's essential for customers to perceive the higher price as justified by the product or service's value.

The share of a company's profits that is paid out to shareholders as dividends. It's a way to reward shareholders for their investment in the company. It's generally determined by the company's managers, who aim to keep this payout attractive to shareholders, encouraging them to hold onto their shares and thus retaining their jobs.

A business model that prioritizes social objectives alongside profit generation. It focuses on benefiting the community and environment while aiming to make a profit to reinvest in its social mission. Examples include businesses providing jobs for disadvantaged groups or promoting environmental sustainability.

A type of company that is owned by the government and typically has a set of specific objectives. Its main objective is to provide a service to the public while adhering to quality targets set by the government.