Vocabulary

A shareholder or stockholder is an individual that legally owns a share of stock in a public or private corporation. Owners of a limited company. They buy shares which represent part ownership of a company.

Provide funding for (a person or enterprise)

A limited company is an organisation that you can set up to run your business - it's responsible in its own right for everything it does and its finances are seperate to your personal finances. Any profit it makes is owned by the company.

- Shares can only be sold to family and friends - invited people only.

- These have "Ltd." after their company name.

- Shares can be sold to anyone

- Sold on the STOCK EXCHANGE

- There is a risk of being taken over.

- Have "PLC." after their company name.

Choose someone to hold public office or some other position by voting.

Retained profit is the profit kept in the company rather than paid out to shareholders as a dividend.

A sum of money paid regularly by a company to its shareholders out of its profits.

A person who is the exclusive owner of a business, entitled to keep all profits after tax has been paid but liable for all losses.

A partnership is the relationship existing between two or more persons who join to carry on a trade or business. Each person contributes money, property, labor or skill, and expects to share in the profits and losses of the business.

A Memorandum of Association (MOA) is a legal document prepared in the formation and registration process of a limited liablity company to define its relationship with shareholders.

The Articles of Association is a document that contains the purpose of the company as well as the duties and responsibilities of its members defined and record clearly. It is an important document which needs to be filed with the Registrar of Companies.

A government official whose job is to keep detailed records about all limited companies (those whose owners only have to pay a limited account if the company gets into debt).

A Certification of Incorporation is a legal document relating to the formation of a company or corporation. It is a license to form a corporation issued by state government. Its precies meaning depends upon the legal system in which it is used.

A market in which securities are bought and sold.

Conduct an official financial examination of an individual's or organization's accounts.

The state of having, owning, or controlling something.

Something, typically money, that is owed or due.

A person who organizes and operates a business or businesses, taking on greater than normal financial risks in order to do so.

Where a business (franchisor) grants permission (license) to another business (franchisee) to trade using their name and brand.

A person with an interest or concern in something, especially a business.

A person who owns something.

A person reponsible for controlling or administering all or part of a company or similar organization.

A person employed for wages or salary, especially at nonexecutive level.

A person or organization that buys goods or services from a store or business.

The final user of a product.

All customers and consumers who are interested in buying a product and have the financial resources to do so.

A good or service which is essential to living.

A good or service which people would like, but is not essential for living.

The cost of the next best alternative foregone.

An economic term to describe to inputs that are used in to production of goods or services in the attempt to make an economic profit. Include land, labour, capital and enterprise.

Natural resource used to produce goods and services.

The people who work for this company.

The money that owned by the enterprise.

The process of increasing the worth of resources by modifying them.

Selling Price - Cost of Materials = Added Value

A person who organizes, operated, and assumes the risk for a business venture.

Unlimited Liability is not capped at a maximum amount and exists regardless of the amout of investment each owner has personally made. 

If the business is unable to meet any financial obligations or settle any outstanding liabilites, the owner's personal assets can be seized to satify the debt.

Limited Liability is where a person's financial liability is limited to a fixed sum, most commonly the value of a person's investment in a company or partnership.

If a company with "Limited Liability" is sued, then the plaintiffs are suing the company, not its owners or investors.