a written document containing information and figures which shows what a business currently does, where it plans to be in the future and how it intends to get there. A business plan will follow a specific structure and be set out in the style of a formal report.

sometimes referred to as a sole proprietor. A sole trader is a person who sets up and owns their own business. They may decide to employ other people but they are the only owner. A sole trader has unlimited liability.

a business with more than one owner (sole traders) and a form of organisation that has unlimited liability. A typical partnership has between two and twenty owners. Partnerships are a common form of business ownership amongst professional bodies such as lawyers and accountants. Partnerships are governed by the terms of the Partnership Act of 1890, although it is common for the partners to draw up a partnership agreement referred to as a 'deed of partnership'.

an individual who invests in a business partnership but then takes no active role within the firm. As a result of this, it is possible for a sleeping partnership to arrange to hold limited liability status within the business.

when businesses become a limited company they legally become a separate entity from their owners. This means that in the eyes of the law they are officially independent from their owners and the owners will have limited liability.

a type of business ownership with limited liability. Private limited companies have the word 'limited' or the letters 'ltd' after their name. A private limited company can be formed with just €2 of share capital. There is no maximum limit on the amount of share capital that a private limited company can have. Private limited companies are not listed on the stock market.

a type of business ownership with limited liability and over 50 shareholders. A public limited company is the only type of company that is allowed to be quoted on the stock exchange and usually has a larger number of share holders than private limited companies. A public limited company has the letters 'PLC' after its name. Examples include AIB PLC and CRH PLC.

when a business has unlimited liability its owners are personally liable for the debts of the business. This means that if the business gets into financial difficulties, the owners risk losing their personal possessions such as their house or car.

when a business has limited liability it is classed as a separate legal entity. This means that its shareholders are only responsible for the debts of the business and all they can lose is the money that they have invested in the business. This legal protection means that if the business gets into financial difficulty, they are safe from losing their personal assets.

an individual who is elected by the shareholders to represent them on the board of a company. A Director can be either an Executive Director or a Non-executive Director. Executive Directors are the company's senior management and are employed by the business, for example the Finance Director is responsible for the Finance Department. Non-executive Directors are not employed by the business but may be appointed to sit on the Board and use their knowledge and experience to give advice.

financial equity refers to the money that is contributed to a project or business. In most cases this refers to the share capital which is invested in a business.

also known as 'stock for services' or 'equity compensation'. Sweat equity refers to the contribution made to a business by individuals who contribute their time and effort. In business start-ups, the founders may provide their 'sweat equity' in exchange for the ownership of shares in the company. This is in contrast to financial equity, which is the money contributed towards the business. The term 'sweat equity' is sometimes used in partnerships where one or more of the partners contributes no financial capital but provides their skills, time and effort.

also known as an angel, angel investor or informal investor. A business angel is a wealthy individual who invests their own money into a business start up in exchange for a share of that business. For example, a business angel may provide €50,000 of capital in exchange for a 15% share of the company. It is becoming common for business angels to organise themselves into 'angel groups' or 'angel networks' to help them to share their research and pool their capital.

a form of external investment in a business. A venture capitalist will invest cash into a small or medium-sized business in exchange for a share of the business. Venture capitalists often provide a package of loans and share capital. For example, a venture capitalist may invest €500,000 in exchange for a €100,000 loan to be repaid with interest and a 25% share in the company. Venture capitalists tend to manage the pooled money of others in a professionally managed fund, rather than risking their own money.

also known as an exit plan. An exit strategy is a plan to terminate the ownership of a company and recoup the initial investment in that business. An investor's exit strategy usually involves selling their stake in the company to somebody else for a considerable profit.

the process of determining the current worth of a business or company. This can be rather difficult to do accurately as whilst it is relatively straight-forward to value a company's physical assets (such as its buildings and equipment), it is more difficult to value intellectual property (such as patents and trademarks) and to put a value on a brand name. Company valuations are primarily concerned with future earnings and the profit potential of a business and consequently are difficult to do.

a floatation occurs when a business is first launched onto the stock market by offering shares to the general public. The business is said to have been 'floated' on the stock market.

a type of intellectual property which protects creative or artistic works. Copyright applies to any medium and covers material such as literature, art, music, sound recordings, films and broadcasts.

a type of intellectual property which protects any signs or symbols that can distinguish a product from its competitors. Any of the following can become a registered trademark: logos, slogans, domain names, shapes, colours and sounds. A registered trademark must be renewed every 10 years to keep it in force.

The WIPO (World Intellectual Property Office) is a specialised agency of the United Nations (UN) responsible for intellectual property in its member states. Its website can be found at www.wipo.int.

commonly abbreviated to EPO. The European Patent Office is the lead European body responsible for patent protection in up to 38 European countries. Its website can be found at www.epo.org.

a name by which a business or organisation is known on the internet. Domain names normally contain the business name or another identifier such as a company's advertising slogan. To protect a domain name it should be registered with an accredited Registrar.

a type of intellectual property which protects the technical and functional aspects of products and processes. A patent gives an inventor of a product or process the exclusive rights to the use of that invention for a fixed period of time.

provides ownership rights to the creators of inventions and ideas so that they can be owned in a similar way to physical property. Intellectual property gives the creators the right to control the use of their invention / idea and use it to gain financial reward.

stands for Business To Business, a term that was originally used in connection with e-commerce and advertising but is now used to discuss the selling of all types of products and services. B2B involves selling your products to other businesses rather than to consumers. For example Microsoft provides server technology to its business customers.

stands for Business To Consumer, a term which was originally used in connection with e-commerce and advertising but is now used to discuss the selling of all types of products and services. B2C involves selling your products directly to your consumers. For example, Amazon.com was one of the first companies to sell books to its customers over the internet.

an individual who is elected by the shareholders to represent them on the board of a company. Executive Directors are senior managers and members of the Board of Directors. Executive Directors are employed by the business and normally have the responsibility of running a large department of the business, for example the Finance Director is responsible for the Finance Department.

a member of the Board of Directors who is not employed by the business. The Non-executive Directors represent the interests of the shareholders and are appointed to use their knowledge and experience to give independent advice.