1.2 Types of Business Entities

Question 1

Cooperatives

Answer 1

For-profit social enterprises owned and run by its members who might be employees and/or customers

Question 2

Company/Corporation

Answer 2

Refers to a limited liability business that is owned by its shareholders

Question 3

Deed of Partnership

Answer 3

Legal contact that is signed by the owners of a partnership - specifies the responsibilities of each member.

Question 4

Incorporation

Answer 4

Means there is a legal difference between the owners of a company and a business itself.

Ensures owners are protected by limited liability

Question 5

Initial Public Offering (IPO)

Answer 5

Occurs when a business sells all or a part of its business to shareholders on a public stock exchange for the first time.

Question 5

Limited Liability

Answer 5

Means that the business is a separate legal entity from its owner, therefore is only allowed to take assets from the business.

Question 6

Non-governmental Organizations (NGOs)

Answer 6

Private sector not-for-profit social enterprise that operate for the benefit of society rather than aiming for profit.

Question 7

Partnerships

Question 8

Privately Held Company

Question 9

The Private Sector

Question 10

Publicly Held Company

Question 11

Public Sector

Question 12

Sole Trader

Question 13

Social Enterprise

Question 14

Stock Exchange

Question 15

Unlimited Liability