1.2 Business Ownership Flashcards
1
Q
Sole trader
A
Someone who sets up a business on their own
2
Q
Unlimited liability
A
means that the personal possessions 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.
3
Q
Partnership
A
Occurs when two or more people join together in a business enterprise to persue profit
4
Q
Deed of Partnership
A
is an agreement between partners that sets out the rules of the partnership, such as how profits will be divided and how the partnership will be valued if someone wants to leave
5
Q
Company
A
is a business that has its own legal identity. It can own items, owe money, sue and be sued.
6
Q
Shareholder
A
is a person or an organisation that owns part of a company. Each shareholder owns a share of the business.
7
Q
Stock Exchange
A
The Stock Exchange is a market for buying and selling shares of public limited companies. Large numbers of shares are being bought and sold all the time.
8
Q
Flotation
A
occurs when a private limited company (ltd) becomes a public limited company (plc) and has its shares listed on the Stock Exchange.
9
Q
Not-for-profit organisatiom
A
Acheive objectives other than profit etc. charity
