Chp 4 Types of business org

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sole trader

Back

a business owned by one person

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limited liability

Back

liability of a shareholders in a company is limited to only the amount they invested.

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unlimited liability

Back

the owners of a business can be held responsible for the debts of the business they own. Their liability is not limited to the investment they made in the business.

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Partnership

Back

a form of business in which two or more people agree to jointly own a business.

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Partnership agreement

Back

written and legal agreement between business partners.

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unincorporated business

Back

one does not have a separate legal identity (ie sole trader & partnership)

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Incorporated business

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companies that have separate legal status from the owners (ie limited companies)

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Shareholders

Back

owners of a limited company, buy shares which represent part-ownership of a business

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Private limited companies

Back

businesses owned by shareholders, but they cannot sell shares to the public

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Public limited companies

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business owned by shareholders, but can sell shares to the public and their shares are tradeable on the Stock Exchange