1.2 Business Ownership

Question 1

sole trader

Answer 1

someone who sets up a business by themselves

Question 2

profit

Answer 2

measures the difference between revenues(sales) and its total costs

Question 3

unlimited liability

Answer 3

means the personal possessions of the ower of a business ae at risk if there are any problems. thee is no limit to the amount of money the owners may have to pay out

Question 4

partnership

Answer 4

when two or more people join together in a business enterprise to pursue profit

Question 5

deed of partnership

Answer 5

an agreement between partners that sets out the rules of the partnership such as how profits will be divided and how the partneship will be valued if someone wants to leave

Question 6

stakeholder

Answer 6

individuals or organisations that are affected by actions of a business

Question 7

company

Answer 7

a business that has its own legal identity. it can own items, owe money, sue and be sued

Question 8

shareholder

Answer 8

is a person or organisation that owns part of a company. each shareholder owns a share of the business

Question 9

stock exchange

Answer 9

a market for buying and selling shares of public limited companies. largebnumbers of shares are being bought and sold all the time

Question 10

flotation

Answer 10

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

Question 11

non profit organisation

Answer 11

an organisation not made to achieve profits