Business law 1 part one Flashcards
(14 cards)
What does business law govern?
The formation and operation of businesses, including aspects like starting, managing, and closing a business
Business law encompasses laws related to entrepreneurship, companies, financial markets, competition, intellectual property, environment, and labor.
What is the role of antitrust law?
Ensures competition in the market
Define ‘entrepreneur’.
A person who starts and operates a business, taking on risks and rewards associated with the venture
What is a ‘firm’?
A business organization selling or distributing goods or services under the same ownership and commercial name
How is a ‘company’ defined?
An enterprise formed by individuals and assets, producing or distributing goods or services based on legal, contractual, or market-driven rules
What is a sole trader?
An individual running a business alone, personally responsible for debts and entitled to all profits
What is a partnership?
A group of individuals jointly starting and managing a business, sharing risks and profits
Define ‘limited liability company’.
A separate legal entity from its owners, with limited liability for shareholders’ personal assets, and profits shared among them
What distinguishes a private company from a public company?
Private companies are owned by individuals or a group, with shares not publicly traded, while public companies sell shares through an IPO, allowing public trading
What is a ‘for profit’ organization?
Entities aiming to make money, distributing profits to owners
Define ‘not for profit’ organization.
Entities focused on serving a cause, using generated profits to support the organization’s objectives, not distributed to owners
Fill in the blank: A _____ is an individual running a business alone, personally responsible for debts.
sole trader
True or False: A public company is sold shares through an initial public offering and is listed on stock exchanges.
True
Fill in the blank: Antitrust law ensures _____ in the market.
competition
