business chapter 4 definitions (types of business organisation)

Question 1

sole trader

Answer 1

is a business owned by one person

Question 2

partnership

Answer 2

a form of business in which 2 or more people agree to jointly own a business

Question 3

partnership agreement

Answer 3

the written and legal agreement between business partners.

Question 4

unincorporated business

Answer 4

one that does not have a separate legal identity.

EX: sole traders & partnerships

Question 5

incorporated business

Answer 5

are companies that have separate legal status from their owners

Question 6

shareholders

Answer 6

the owners of a limited company.

Question 7

private limited companies

Answer 7

are business owned by shareholders but they cannot sell shares to the public

Question 8

public limited companies

Answer 8

are businesses owned but shareholders but they can sell shares to the public

Question 9

annual general meeting

Answer 9

a legal requirement for all companies. Shareholders may attend and vote on who they want to be on the Board of Directors of the coming year

Question 10

dividents

Answer 10

are payments made to shareholders from profits (after tax) of the company. They are the return to shareholders for investing in the company

Question 11

franchise

Answer 11

is a business based upon the use of the brand names, promotional logos and trading methods of an existing successful business.

Question 12

joint venture

Answer 12

is where 2 or more businesses start a new project together, sharing capital, risks and profits

Question 13

public corporation

Answer 13

is a business in the public sector that is owned and controlled by the state government