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business studies chapter 4


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[Front]


sole trader
[Back]


is a business owned by one person

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business studies chapter 4 - Detalles

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Sole trader
Is a business owned by one person
Limited liability
Liability of shareholders in a company is only limited to the amount the invest in
Unlimited liability
Owners of a business can held responsible for the debts of the business they own
Partnership
Is a form of business in which two or more people agree to jointly own a business
Partnership agreement
Legal and written agreement between business partners. Isn't essential but recommended
Unincorporated businesses
Business that does not have a separate legal identity for example sole traders and partnerships
Incorporated businesses
Companies that have separate legal status from their owners
Shareholders
Owners of a limited company. they buy shares that represent part ownership of a company
Annual general meeting
Legal and required meeting for all companies. shareholder may attend and vote on who they want on the board of directors for the coming year
Dividends
Payments made to the shareholders from the profits(after tax) of the company. They return to the shareholders for investing in the company
Franchise
Businesses based upon the usage of the brand name, potential trading methods of an existing successful company. The franchisee buys the license to operate this business from the franchisee.