Terms To Remember

Question 1

Creditor

Answer 1

A person or institution that extends credit by giving another entity permission to borrow money if it if paid back later.

Question 2

Dividend

Answer 2

A distribution of a portion of a company’s earnings, decided by a board of directors to a class of its shareholders

Question 3

Franchise

Answer 3

A type of license that allows another party to use a business’s proprietary knowledge, processes and trademarks in order to sell a product/service under the company’s name.

Question 4

Franchisee

Answer 4

The party that is purchasing the business stuff in a franchise

Question 5

Goodwill

Answer 5

The established reputation of a business regarded as a quantifiable asset and is calculated as part of its value

Question 6

Sole trader

Answer 6

A person who is the exclusive owner of a business

Question 7

Leasing

Answer 7

A financial arrangement in which an entity pays to use or occupy property during a period of time.

Question 8

Overdraft

Answer 8

An extension of credit from a lending institution when an account reaches zero

Question 9

Partnership

Answer 9

An arrangement in which two or more individuals share the profits and liabilities of a business venture

Question 10

Private company

Answer 10

A company whose shares may not be offered to the public for sale and which operates under less strict requirements than a public company

Question 11

Public company

Answer 11

A company that has issues securities through an initial public offering (IPO) and is traded on at least one stock exchange or in the over the counter market

Question 12

Shareholder

Answer 12

Any person, company or other institution that owns at least one share of a company’s stock

Question 13

Full time work

Answer 13

• person works a minimum number of hours defined by employer

- benefits such as annual leave, sick leave and health insurance

Question 14

Part time work

Answer 14

• works on average less than 38 hours per week
• usually works regular hours
• entitled to benefits but on a pro rata basis

Question 15

Casual employee

Answer 15

• no guaranteed hours of work
• no paid sick or annual leave
• can end employment without notice

Question 16

Traineeship/apprenticeship

Answer 16

• employed at a low level in a particular job in order to learn the skills needed for that job

Question 17

Ongoing work

Answer 17

• does not have specified date of cessation

- continues work until employee resigns or employment terminated

Question 18

Temporary/contract work

Answer 18

• working arrangement limited to a certain period of time

- based on needs of the employer

Question 19

Perpetual succession

Answer 19

The continuation of a corporation’s existence despite the death, bankruptcy, insanity, change of membership or an exit from an owner or member.

Question 20

Legal entity

Answer 20

A lawful or legally standing association, corporation, partnership, proprietorship trust or individual.