Key Term

Question 1

Entrepreneur

Answer 1

An individual who has the skills and knowledge to set up and run their own business and is willing to take risks

Question 2

Capital

Answer 2

Wealth in the form of money or assets

Question 3

Sole trader

Answer 3

Somebody who owns and runs their business on their own. However this does not stop them from employing other people to work in the business

Question 4

Sleeping/limited partnerships

Answer 4

They investing into the business but do not take part in day to day running of the business or any decision making

Question 5

Shareholders

Answer 5

The owners of private and public limited companies

Question 6

Shares

Answer 6

A unit of the ownership in a limited company

Question 7

Limited liability

Answer 7

This is when the responsibility for the debts of the company is limited to the amount the shareholders put in and can’t take any of there personal assets or belongings

Question 8

Internal stakeholders

Answer 8

Those inside the business
Eg employees or shareholders/owners

Question 9

External stakeholders

Answer 9

Outside business
Eg competitors, government or societ/wider community

Question 10

Deed of partnership

Answer 10

A document stating who owns the partnership, how much money each partner has invested and their role in the business