1.2

Question 1

Sole Trader

Answer 1

Someone who sets up a business on his/her own

Question 2

Profit

Answer 2

Measures the difference between the values of a business’s revenue (sales) and it’s total costs

Question 3

Unlimited Liability

Answer 3

Means that the personal possessions of the owners of a business are at risk if there are any problems

Question 4

Partnership

Answer 4

Occurs when two or more people join together in a business enterprise to persue profit.

Question 5

A deed of partnership

Answer 5

An agreement between partners that sets out the rules.of the partnership, such as how profits will be divided.

Question 6

A company

Answer 6

A business that has it’s own legal identity. It can own items, owe money, sue and can be sued

Question 7

A shareholder

Answer 7

A person or an organisation that owns part of a company. Each shareholders owns a ‘share’ of the business

Question 8

The stock exchange

Answer 8

A market for buying and selling shares of public limited companys.

Question 9

A flotation

Answer 9

A flotation occurs when a private limited company (ltd) becomes a public limited company (plc) and has it’s shares listed on the stock exchange

Question 10

A non-profit-organisation

Answer 10

Is set up to achieve other objectives other than profit; for example a charity.