1.2 Business Ownership Flashcards
What is a Sole trader?
A Sef-employed person who owns and controls their own business
What is a partnership?
Two or more partners running a business
What does a Private Limited Company (LTD) mean?
An organisation owned by shareholders who have each invested a sum into the business
What does a Public Limited Company (PLC) mean?
A business that is legally allowed to sell its shares to the public
What is a non profit organisation?
A business that provides a public service without trying to make a profit
What is unlimited liability?
If the business is in debt, it comes out of the owners pocket
What is a shareholder?
Someone who owns part of a private or public limited company
What is limited liability?
When the business owner(s) is only responsible for their financial investment
What does shares mean?
A percentage of a company
