Business word definitions

The owners and the business are legally the same

The owners and the business are legally seperate

They are personally liable for all debts of the business, (have to use personal savings/ possessions to pay back their business debts)

*Sole traders

*Partners

The owners (shareholders) are responsible to pay back business debts up to the amount they have invested into the business

e.g If they invest £10,000, they will only lose £10,000 even if business debts are in the millions

Tells people information about the company

- Company name

- Main business address

- What the business does

- Statement of liability

- Number of shares to be sold

The rule book of the Company

- Rules for having shareholder meetings

- List of directors and their jobs

- The voting right of shareholders

- Details of how accounts will be recorded