Different Business Forms Flashcards
1
Q
Bankrupt
A
When an individual is unable to meet personal liabilities, some or all of which can be as a consequences of business activities.
2
Q
Creditors
A
Those owned money by a business, e.g suppliers.
3
Q
Incorporation
A
Establishing a business as a separate legal entity from its owners, giving them limited liability.
4
Q
Monopoly
A
Where the sales of one business have a dominant share of it’s marketplace.
5
Q
Sole Trader
A
A one-person business with unlimited liability.
6
Q
Unlimited Liability
A
Owners are liable for any debts incurred by the business, even if it requires them to sell all their assets/ possessions and become personally bankrupt.
7
Q
Registrar of Companies
A
The government department which can allow firms to become incorporated.
