Types Of Businesses Flashcards
(9 cards)
1
Q
What does unincorporated mean?
A
Are those that where there is not legal distinction/difference between the owner and the business
Everything is carried out in the name of the owner.
2
Q
Define sole trader.
A
One business owner.
3
Q
What is a partnership?
A
Multiple people.
4
Q
What are incorporated businesses?
A
Those that have a separate legal identity from that of its owners.
5
Q
What does liquidation mean?
A
Gone out of business.
6
Q
Who are shareholders?
A
Owners of incorporated businesses.
7
Q
What is liability?
A
Is about the responsibility to pay debt.
8
Q
What is limited liability?
A
Only lose their own investment (no more).
9
Q
What is unlimited liability?
A
They can lose their personal assets and savings to pay back debt.
