Ch4 –AO1

Question 1

Ltd

Answer 1

Private limited company. Shareholders need to be invited.

Question 2

PLC

Answer 2

Public limited company. A company that sells shares on the stock exchange. Minimum share capital of 50,000 pounds.

Question 3

Limited liability

Answer 3

Business owner is only liable for the original amount invested in the business

Question 4

Incorporated

Answer 4

Business that has a separate legal identity from the of its owners 

Question 5

Dividend

Answer 5

Share of the profits paid to the shareholders of the company

Question 6

Shareholder

Answer 6

Owner of a limited company

Question 7

Stock market

Answer 7

Market for shares of PLCs

Question 8

IPO

Answer 8

Initial public offering

Question 9

Flotation

Answer 9

Process of the company “going public”

Question 10

Certificate of incorporation

Answer 10

Certificate given to companies meaning they can start trading

Question 11

Memorandum of association

Answer 11

Contains details of the nature, purpose, and structure of the company 

Question 12

Articles of association

Answer 12

Contains details of the internal rules of the company 

Question 13

AGM

Answer 13

Annual general meeting