1.2 vocab

Question 1

Companies

Answer 1

Any business organisation that is owned by its shareholders ( who have LIMITED liability)
-privately or publicly held

Question 2

Deed of Partnership

Answer 2

A legally binding contract that all joint owners of a PARTNERSHIP sign
States:
-purpose of the business
-formal rights of the partners
- how ANY profits should be split

Question 3

Limited Partnership

Answer 3

≥1 partners contribute capital and enjoy a share of the profits but do NOT run the business.
(at least one must have unlimited liability)

Question 4

Sleeping/silent Partner

Answer 4

an investor in a partnership that does NOT get involved in the daily managing and running of the organisation

Question 5

Stock Exchange

Answer 5

ANY marketplace where the general public + other companies can buy and sell shares

Question 6

Incorporation

Answer 6

LEGAL difference between the owners + business entity itself
(ensures owners are protected by limited liability)

Question 7

Initial Public Offerings
(IPOs)

Answer 7

This occurs when an organisation sells all (or part) of its business to shareholders on a public stock exchange for the FIRST time
(changes legal status to publicly held company)

Question 8

Social Enterprises

Answer 8

Revenue-generating businesses with social objectives at the core of their operations
-made to benefit general public
(no private shareholders)