1. The context and purpose of Fin.Reporting Flashcards
1
Q
What is a business?
A
A biz is an org which uses eco resources (4M) to create goods or services which customers or clients will buy, through which to earn profit.
2
Q
Sole trader
A
- A biz owned and run by one individual
- The individual biz and personal affairs are identical
3
Q
Partnership
A
- Arrangement between individuals to carry on biz in common
- Govern by a P agreement
- Partner are fully liable for debts and liabilities of the biz
4
Q
Limited Liability Company
A
The biz’s debts and shareholders’ debts are legally seperate
