Business 1.2 - Types of business entities

Question 1

non-profit social enterprises that provide voluntary support for good causes

Answer 1

charities

Question 2

for-profit social enterprises set up, owned and run by their members (employees or customers)

Answer 2

cooperatives

Question 3

business that is owned by shareholders

Answer 3

company/corporation

Question 4

certificate of incorporation

Answer 4

gives company a separate legal identity from it’s owners

Question 5

legal contract signed by the owners of a partnership & specify the name and responsibilies of each partner & their share of profits and losses

Answer 5

deed of partnership

Question 6

there is a legal difference between the owners of a company and the business itself (ensures the owners limited liability)

Answer 6

incorporation

Question 7

when a business sells all/part of its business to shareholders on a stock exchange for the first time

Answer 7

initial public offering (IPO)

Question 8

restriction on amount of money the owners can lose if a business goes bankrupt

Answer 8

limited liability

Question 9

type of financial service that provides money for entrepreneurs of small businesses, especially females/low incomes

Answer 9

microfinance

Question 10

private sector not-for-profit social enterprises that operate for the benefit of others

Answer 10

non-governmental organizations (NGO)

Question 11

private sector business owned by 2-20 people

Answer 11

partnerships

Question 12

owned by shareholders with limited liability but whose shares cannot be bought by or sold to the general public

Answer 12

private limited company

Question 13

run by private individuals and businesses, rather than the governement

Answer 13

private sector

Question 14

incorporated business that allows the public to buy and sell shares in the company via stock exchange

Answer 14

public limited company

Question 15

government working together with the private sector to jointly provide certain goods or services

Answer 15

public-private partnerships

Question 16

part of economy controlled by the government

Answer 16

public sector

Question 17

self-employed person who runs and controls the business and if the sole person held responsible for its success or failure

Answer 17

sole trader

Question 18

revenue generating business with social objectives at the core of their operations (can be for profit or non-profit)

Answer 18

social enterprises

Question 19

owned by the government

Answer 19

state-owned enterprises

Question 20

market place for trading stocks and shares of public limited companies

Answer 20

stock exchange

Question 21

legally liable for all monies owed to their creditor, even if they have to sell personal belongings for debts

Answer 21

unlimited liability