Forms Of Business Flashcards
(13 cards)
What is an incorporated business
The business and its owner are legally different, owners have limited liability
What is an unincorporated business
The owner is the business with no legal difference, owners have unlimited liability
What is limited liability
-The owners of the business aren’t personally liable
-if a business has debt not payed off they will loose the money invested not personal asset
What is unlimited liability
-The owner of the business is responsible for any dept
-if dept is unpaid personal assets may be taken
What is a sole trader
An individual owning the business on their own
What is a partnership
Where two or more people share the costs,risks and responsibilities of being in their business
What is a private limited company/LTD
A sole trader or partnership become an LTD by selling shares privately to selected individuals
What is a public limited companies/PLC
as LTD’s grow they may want to become a PLC. This is listing shares publicly on stock exchange for anyone to purchase
What is stock market flotation
The process of issuing and selling shares to public investors
What is a social enterprise
A business with non profit objective, they want to help to do good-charities
What is a lifestyle business
An entrepreneur that runs a business to suit their lifestyle
Online business
Online businesses are those that trade in a virtual market place
What is another name of an online business
E commerce
