Definitions 5

Question 0

Limited liability

Answer 0

Where a business owner is only accountable for the original amount of money invested in the business

Question 1

Deed of partnership

Answer 1

A binding legal document which states the formal rights of partners

Question 2

Limited liability partnership

Answer 2

A partnership where all partners are only accountable for the money which they invested into the partnership

Question 3

Limited partnership

Answer 3

A partnership where some members contribute capital and enjoy a share of profit, but do not participate on the running of the business. At least one partner must have limited liability.

Question 4

Organisation

Answer 4

A body set up to meet a need

Question 5

Partnership

Answer 5

A business organisation which is usually owned by 2-20 people

Question 6

Private sector

Answer 6

Businesses that are owned by individuals or groups of individuals

Question 7

Sole trader

Answer 7

A business with a single owner

Question 8

Unlimited liability

Answer 8

Where the owner of a business is personally liable for all business debts

Question 9

Flotation

Answer 9

Process of a company going public