unit 6: types of commercial enterprises Flashcards
1st legal form of commercial enterprises:
unincorporated business
those businesses where there’s no legal diff. between the owner and the business
2nd legal form of commercial enterprises:
incorporated business
where the business has a separate legal identity from that of its owners
limited company
business organisation that has seperate legal identity from that of its owners
sole trader
business owned by a single person
capital
finance provided by owners of the business
unlimited liability
where the business owner is personally responsible for all business debts, possibly beyond the original amount invested
cooperative
private business:
OWNED & CONTROLLED by people who USE its products, supplies or services
annual general meeting (AGM)
where board gives a presentation relating to performance of business
dividend
amount of money paid to shareholders from profit
deeds of partnership
legal document that states official rights of partners
limited partnership
some partners CONTRIBUTE CAPITAL and **ENJOY SHARE OF PROFIT **but **DON’T TAKE PART IN RUNNING **business
limited liability
where business owner : ONLY RESPONSIBLE for ORIGINAL AMOUNT INVESTED
