Legal Forms

Question 1

Sole Trader / Individual Proprietor

Answer 1

business owned and operated by one individual

Question 2

General Partnership

Answer 2

company owned by 2 or more partners who share its profits and carry its whole liability

Question 3

Limited Partnership

Answer 3

at least one partner has unlimited liability, others can be limited

Question 4

Sleeping / Dormant / Silent partner

Answer 4

doesn’t take active part in management

Question 5

Limited Liability Company

Answer 5

legal entity whose assets are separate from its owners -> owners have limited liability

Question 6

Private Limited Company (UK)

Private Stock Corporation (US)

Answer 6

a type of legal entity which is owned by one or a few people who are closely involved in managing the business

Question 7

Public Limited Company (UK)

Public Stock Corporation (US)

Answer 7

a type of legal entity which is owned by anyone who buys a part of it

Question 8

corporation

Answer 8

large company or group of companies authorized to act as a single entity

Question 9

to incorporate

Answer 9

to include something as a part of something larger

Question 10

to be liable

Answer 10

to be legally responsible