OWNERSHIP Flashcards
1
Q
what is trading?
A
when a business is operating
2
Q
what is a company?
A
a legal form of business either, private or public
3
Q
what is a legal structure?
A
the way a business is set up and the rules that it must follow
4
Q
what is liability?
A
risk of loss, responsibility for debts
5
Q
what is limited liability?
A
the amount of debt that owners have responsibility for is only up to what they have invested (money they put into the business)
6
Q
what is unlimited liability?
A
owners have total responsibility or all debt, regardless of the amount of their investment (money they put into the business)
7
Q
what’s incorporated?
A
a legal entity that separates assets and income from its owners and investors e.g. private limited company
