Chapter 4 Flashcards
Sole Trader
The business is owned by one person.
Partnership
The business is jointly owned by two or more people
Limited liability
The liability of owners/shareholders is limited to the amount invested. Personal possessions are not at risk.
Incorporated business
A business with separate legal identity from its owners, e.g. a limited company.
Unincorporated business
A business without separate legal identity from its owners, e.g. a sole trader or partnership.
Private limited company
A business owned by shareholders but it cannot sell shares to the public
Public limited company
A business owned by shareholders but it can sell shares to the public and its shares are tradable on the Stock Exchange.
Shareholders
The owners of a limited company
Dividends
Payments made to share holders from the profits(after tax) of a comapany.
franchise
AA business that uses, under licence, the brands name, logo and trading methods of anexisting business.The franchisor sells the licence;the franchisee buys the licence.
Joint venture
Two or more businesses start a new project together sharing capital, risks and profits
Public corporation
A business, in the public sector, that is owned and controlled by the state (government).
