1 & 2 - Business law introduction Flashcards
1
Q
What makes a company’s constitution
A
articles of association
2
Q
in what way can the owners of a company control how a company is managed?
A
appoint directors
alter company’s constitution - limiting what directors can do
exercise voting control
3
Q
how does a shareholder hope to make money on their investment? (3)
A
Dividends
Capital growth when selling shares
Profits on winding up
4
Q
What is a sole trader’s liability?
A
Unlimited - can extend to all their assets
5
Q
In which businesses do investors have limited liability?
A
Limited companies
LLPs
6
Q
what is limited liability?
A
liability is limited to the amount unpaid on their shares
7
Q
how is a show of hands counted?
A
one vote per member
8
Q
how is a poll counted?
A
one vote per share
