Vocab And Meaning

Question 1

Liability

Answer 1

Responsibility of owner for debt of business

Question 2

Shareholders

Answer 2

A person/company that owns at least ONE SHARE of a company’s STOCK.

Question 3

Stakeholder

Answer 3

A party that had an interest in a company that can effect or be effected by the business.

Question 4

Jointly/severally

Answer 4

A business with MORE then ONE owner involved = all owners responsible for actions and debt of business

Question 5

Close corporation

Answer 5

Like a private company (has its own legal personality and entity)

Question 6

Prospectus

Answer 6

a preliminary printed statement that describes an enterprise (such as a business or publication) and that is distributed to prospective buyers, investors, or participants.

Question 7

Shareholders vs stakeholders

Answer 7

A shareholder is someone who owns stock in your company, while a stakeholder is someone who is impacted by (or has a “stake” in) a project you’re working on.

Question 8

Legal entity

Answer 8

any business organization that is legally permitted to enter into a contract, including a contract for the purchase, sale, or lease of real property.