1.2 Business Ownership Flashcards
What is a sole trader?
A sole trader is someone
who sets up in business
on his or her own.
What is profit
Profit measures the difference between the
values of a business’s revenue (sales) and its
total costs.
What is unlimited liability
Unlimited liability 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
What is a partnership?
partnership occurs when two or more
people join together in a business enterprise to pursue profit
What is a company?
A company is a business that has its own legal
identity. It can own items, owe money, sue and be sued
What is a shareholder?
A shareholder is a person or an organisation that owns part of a company. Each shareholder owns a “share of the business.
What is a flotation?
A flotation occurs when a private limited company (ltd) becomes a public limited company (plc) and has its shares listed on
the Stock Exchange.
What is a not for profit organisation?
A not-for-profit organisation is set up to
achieve objectives other than profit; for example, a charity.
