1.2 Bussiness Ownership

Question 1

What is a sole trader?

Answer 1

Someone who owns a bussiness themselves and they can losse everything

Question 2

Profit

Answer 2

Measures the difference between the values of A business revenue (sales) and its total cost

Question 3

Unlimited liability

Answer 3

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

Question 4

Partnership

Answer 4

This is when two or more people join together to make a business enterprise to pursue profit

Question 5

Deed of partnership

Answer 5

This is the agreement between the parties that sit out the rules of the partnership such as higher profits will be divided and how the partnership will be valid if someone wants to leave

Question 6

Stakeholders

Answer 6

Are individuals or organisations that’s are affected by, and affect, the activites of the bussiness

Question 7

Company

Answer 7

Is a business that has its own legal identity. It can own items, owed money, sue and be sued

Question 8

Shareholder

Answer 8

It is a person or an organisation that owns part of a company in shareholder owns a share of the business

Question 9

Stock exchange

Answer 9

A market for buying and selling shares of public limited companies

Question 10

Flotation

Answer 10

This is when a private limited company becomes a public limited company and has its share listed on the stock exchange