chapter 4 Flashcards
definitions and basic information
define : sole trader
(unlimited liability/unincorporated buisness)
A buisness that is owned and managed by one person
Define: A partnership
(unlimited liability/unincorporated buisness)
A buisness formed by two or more people who will usually share responsibility for the day to day running of the buisness.
Unincorpirated buisiness
eg. sole traders and partner ships
A buisness that the same legal identity as its owners. The owners have unlimited liability for buisness debts
Unlimited liability
If an unicorportaed buisness fails, the owners might have to use their personal wealth finance buisness debts
Shareholder
A person or organisation that owns shares in a limited company
Private limited company PLC
a small or medium sized company owned by shareholders who have limited liability
Public limited company
A large company owned by shareholders who have limited liability and can sell its shares to the general public
limited liability
the share holders of a limited liability company which loses only what they have invested
Dividend
A payment out of profits to shareholders as a reward for their invesment.
collateral
non current assests offered as security against borrowing
Franchise
A buisness system where entrepenuers buy the right to use the name logo and product of already existing buisnesses
Franchisor
Firm with an already sucsessfull buisness
Joint ventures
two or more buisnesses that agree to work together on a project and set up seperate buisnesses
