CP Business studies Partnership and Limited companies

A legal entity which has a separate identity from its shareholders, whose liability for the company’s debts is limited.

• Sole trader

• Partnership

• Limited company

_________ are part owners of a limited company. They are people or institutions who hold one or more shares in a company.

• Directors

• Shareholders

• Managers

A unit of investment in a company. These make up the capital of the company. They can have a nominal or face value of $ 0.50, $ 1, $ 10 etc.

• Share

• Dividend

• Debenture

A portion of a company’s earnings distributed to its shareholders.

• Profit

• Dividend

• Income

• Earning

What is a major advantage of a business that is a partnership rather than a sole proprietorship?

• The responsibility for the business is shared
• The business is easy to set up
• The partners are not responsible for business debts
• The business is easy to sell

What is a major advantage of a business that is a partnership rather than a sole proprietorship?

• The responsibility for the business is shared
• The business is easy to set up
• The partners are not responsible for business debts
• The business is easy to sell

What is a business owned by stockholders/investors but operated by others?

• Sole Proprietorship

• Partnership

• Limited Companies

What is a business owned and operated by two or more people?

• Sole Proprietorship
• Partnership
• Corporation

What is ONE advantage of a Limited company?

• Difficult to start

• Make all of the decisions

• Easy to raise money!

Disadvantages include limited life and

the potential for conflict between partners

• Sole Propriotorship

• Partnership

• Limited company