IGCSE Business Studies – Business Activity – Cambridge CIE – Topic Summary with Key
Definitions and Examples
Incorporated business Where the business has a separate legal identity from that of its
owners
Limited liability Where a business owner is only liable for the amount of money invested in
the business
Limited liability partnership A partnership where all partners have limited liability
Limited partnership A partnership where some partners (sleeping partners) contribute
capital and enjoy a share of the profit but do not take part in the running of the business
Partnership Where between two and twenty people own the business
Sole trader A business owned by a single person
Unincorporated business Those businesses where there is no legal distinction between the
owner and the business
Unlimited liability Where the owner of a business is personally liable for all business debts
Flotation The process of a company 'going public'
Joint venture Where two or more companies share the cost, responsibility and profits from
a business venture
Limited company A business organisation which has a separate identity from that of its
owners
, Stock market A market for shares in PLCs
Globalisation The growing integration of the world's economies
Multinational A large business with markets and production facilities in several different
countries
Repatriation (of profits) Where a multinational returns the profits from an overseas venture
to the country where it is based
Capital intensive production Production methods that make more use of machinery relative
to labour
Division of labour A specialisation in specific tasks of skills by an individual
Entrepreneur An individual who organises the other factors of production and risks their
own money in a business venture
Factors of production The resources used to produce goods and services. They include land,
labour, capital and enterprise
Fixed capital The stock of man-made resources such as machinery and tools used to make
goods and services
Labour The people used in production
Labour intensive production Production methods that make more use of labour relative to
machinery
Definitions and Examples
Incorporated business Where the business has a separate legal identity from that of its
owners
Limited liability Where a business owner is only liable for the amount of money invested in
the business
Limited liability partnership A partnership where all partners have limited liability
Limited partnership A partnership where some partners (sleeping partners) contribute
capital and enjoy a share of the profit but do not take part in the running of the business
Partnership Where between two and twenty people own the business
Sole trader A business owned by a single person
Unincorporated business Those businesses where there is no legal distinction between the
owner and the business
Unlimited liability Where the owner of a business is personally liable for all business debts
Flotation The process of a company 'going public'
Joint venture Where two or more companies share the cost, responsibility and profits from
a business venture
Limited company A business organisation which has a separate identity from that of its
owners
, Stock market A market for shares in PLCs
Globalisation The growing integration of the world's economies
Multinational A large business with markets and production facilities in several different
countries
Repatriation (of profits) Where a multinational returns the profits from an overseas venture
to the country where it is based
Capital intensive production Production methods that make more use of machinery relative
to labour
Division of labour A specialisation in specific tasks of skills by an individual
Entrepreneur An individual who organises the other factors of production and risks their
own money in a business venture
Factors of production The resources used to produce goods and services. They include land,
labour, capital and enterprise
Fixed capital The stock of man-made resources such as machinery and tools used to make
goods and services
Labour The people used in production
Labour intensive production Production methods that make more use of labour relative to
machinery
