Entrepreneurship

Question 1

forming a public limited company is that advertisements may be paced in
financial newspaper inviting the public to apply for shares:

Answer 1

a prospectus

Question 2

Sole proprietorship

Answer 2

🇷🇴 Întreprindere individuală / firmă cu un singur proprietar
📘 Example:

A sole proprietorship is easy to start but the owner has unlimited liability.

Question 3

Partnership

Answer 3

🇷🇴 Parteneriat
📘 Example:

In a partnership, two or more people share ownership and responsibility for the business.

Question 4

Capital

Answer 4

🇷🇴 Capital (bani necesari pentru afacere)
📘 Example:

You need enough capital to start your business or you might have to borrow from the bank.

Question 5

Limited liability

Answer 5

🇷🇴 Răspundere limitată (poți pierde doar ce ai investit)
📘 Example:

Limited liability protects owners so they don’t lose personal assets if the business fails.

Question 6

Sleeping partner

Answer 6

🇷🇴 Partener tăcut (nu se implică în administrare)
📘 Example:

A sleeping partner invests money but does not manage the business.

Question 7

Corporation / Company

Answer 7

🇷🇴 Companie / societate pe acțiuni
📘 Example:

A corporation is a separate legal entity from its owners.

Question 8

Shareholder

Answer 8

🇷🇴 Acționar
📘 Example:

Shareholders own shares and have a stake in the company.

Question 9

Prospectus

Answer 9

🇷🇴 Prospect (document pentru ofertă publică de acțiuni)
📘 Example:

The prospectus provides information about the company’s financial status before buying shares.

Question 10

Bookkeeper

Answer 10

🇷🇴 Contabil (care ține evidența financiară)
📘 Example:

A bookkeeper records financial transactions to keep the accounting system accurate.

Question 12

What do you understand by sole proprietorship?

Answer 12

A sole proprietorship is a business owned and run by one person. The owner has unlimited liability, meaning they are personally responsible for all debts and obligations of the business.

Question 13

What do you understand by partnership?

Answer 13

A partnership is a business owned and operated by two or more people. All partners share responsibility for the business’s debts and decisions, although sometimes a sleeping partner can have limited liability.

Question 14

Why are limited liability companies economically efficient?

Answer 14

Limited liability companies are economically efficient because owners risk only the money they invest, which encourages investment. Even though they make up a small percentage of all businesses, they earn a large part of the total income in the economy.

Question 15

What are the main reasons for small business failure?

Answer 15

One main reason for small business failure is inadequate financial planning, not lack of management skills. Successful businesses need good knowledge of the market, accounting principles, and financial management.

Question 16

What is a sole proprietorship?

Answer 16

A business owned by one person with unlimited liability.

Question 17

What is a partnership?

Answer 17

A business owned by two or more people who share responsibility.

Question 18

Why are limited liability companies efficient?

Answer 18

Owners risk only their investment, encouraging more business and income.

Question 19

Why do small businesses often fail?

Answer 19

Mainly because of poor financial planning, not poor management.

Question 20

Four Ps of marketing

Answer 20

Cei patru P ai marketingului (Product, Price, Place, Promotion)

Question 21

Market segmentation

Answer 21

Segmentarea pieței

Question 22

Financier’s interest

Answer 22

Interesul finanțatorului

Question 23

Sole Trader

Answer 23

Traducere: Persoană fizică autorizată / Întreprinzător individual
Definiție: A sole trader is a business owned and run by one person who is personally responsible for all aspects of the business, including debts.

Exemplu:
As a sole trader, you keep all the profits but also face unlimited liability for any debts the business incurs.