Cultivating Diversity – BME Community Enterprise Toolkit

OF TERMS
GLOSSARY
General Meeting - a yearly meeting of the members or shareholders of
Annual
a club, company, or other organisation, especially for holding elections and reporting
on the year's events
Asset Lock - a constitutional device that prevents the distribution of residual assets to
members. The purpose of an asset lock is to ensure that the public benefit or
community benefit of any retained surplus or residual value is cannot be appropriated
for private benefit of members. Residual assets can be in the form of property,
equipment or cash
Asset Transfer (Community Asset Transfer) - The transfer of land or buildings from
a public body (usually a local authority) to a community-based organisation at less
than market value
Beneficiaries – The individuals, organisations or communities that directly gain from
the activities provided by the Community Business in the form of social, economic
or environmental impact
Board – the group of people who control, direct and are legally responsible for the
activities of the Community Business (see also Governance)
Budget - an estimate of income and expenditure for a set period and the balance
between the two. For Community Business budgets are almost always set out annually
and are reviewed by the organisation at the end of each year. Budgets are used to
forecast the financial situation for a Community Business, which it then monitors its
actual performance against
Business Model - a plan for the successful operation of a business, identifying sources
of revenue, the intended customer base, products, and details of financing
Business Units – specific business activities of the Community Business with a distinct
trading model, customer base, and beneficiary base
Capital - wealth in the form of money or other assets owned by a person
or organisation or available for a purpose such as starting a company or investing
Capital Development – or capital project relates to the development of land
or property in form of new construction, expansion, renovation, or replacement for
an existing facility or new facility
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