1.2 Business Ownership

Question 1

Sole Trader

Answer 1

A sole Trader is a form of business that is owned and managed by one person

Question 2

Partner Ship

Answer 2

A partner ship occurs when two or more people join together in a business enterprise to pursue profit.

Question 3

A deed of partnership

Answer 3

A deed of partnership is an agreement between partners that

Question 4

Profit

Answer 4

Measures the difference between the value of a business’ revenue(sales) and its total costs

Question 5

Unlimited liability

Answer 5

Means that the personal possesions of the owners of a business are at risk if there are any problems. There is no limit to the amount of money the owners may have to pay out

Question 6

Limited liablity

Answer 6

the condition by which shareholders are legally responsible for the debts of a company only to the extent of the nominal value of their shares.

Question 7

Stakeholder

Answer 7

A stakeholder are individuals and organizations that are affected by and affect the activities of a busniess

Question 8

Stock exchange

Answer 8

A market for buying and selling shares of public plimited companies. Large number of shares are being bought and sold at all times.

Question 9

Flotation

Answer 9

when private limited company becomes public limited company and has its shares listed on the stock exchange.