Overall Mock Theme 1 Flashcards
1
Q
Limited Liability
A
An investor’s liability/financial commitment is limited to the total amount invested or promised in share capital
2
Q
Unlimited liability
A
The owners of a business are responsible for the total amount of debt of the business
3
Q
Sole trader
A
is an individual who owns and runs their own business
4
Q
Partner definition
A
is where two or more people run the business
5
Q
What do shareholders have ?
A
Shareholders have limited liability – they are not responsible for the company’s debts
6
Q
What is franchising?
A
A franchise is when one business (the franchisor) gives another person or business (the franchisee) the right to trade using its name and to sell its products or provide its services
