Business Ownership Flashcards
1
Q
Dividends
A
a sum of money paid regularly (typically annually) by a company to its shareholders out of its profits (or reserves).
2
Q
Economics of Scale
A
economies of scale are the cost advantages that enterprises obtain due to their scale of operation.
3
Q
Sole trader
A
a self-employed person who owns and runs their own business as an individual
4
Q
Partnership
A
a formal arrangement by two or more parties to manage and operate a business and share its profits
5
Q
Private limited company
A
does not publicly trade shares and is limited to a maximum of 50 shareholders.
6
Q
Public limited company
A
A public limited company (PLC) is a business that is legally allowed to sell its shares to the public.
