Unit 1

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Unincorporated Business
No distinction in law between the individual owner and the business itself.
1 of 13
Incorporated Business
Has a legal identity that is separate from the individual owners. So can own assets, owe money and enter into contracts in their own right.
2 of 13
Unlimited Liability
Owners of the business are liable for all debts that the business may incur.
3 of 13
Limited Liability
The liability of the owners of a business is limited to the fully paid-up value of the share capital.
4 of 13
Sole Trader
A business owned by one person.
5 of 13
Private Limited Company
A small to medium sized business that is usually run by the family or small group of individuals who own it.
6 of 13
Public Limited Company
Has limited liability, shareholders and a share capital of over £50,000.
7 of 13
Ordinary Share Capital
Money given to a company by shareholders in return for a share certificate that gives them part ownership of the company.
8 of 13
Dividend
A payment made to a shareholder by a company out of its profits earned.
9 of 13
Market Capitalisation
The value of outstanding shares in a PLC.
10 of 13
Market Capitalisation
Total outstanding shares x current market price of an individual share.
11 of 13
Shareholder
Owner of a limited company
12 of 13
Share Price
The price of a single share in a company, often determined by the supply and demand for shares.
13 of 13

Other cards in this set

Card 2

Front

Has a legal identity that is separate from the individual owners. So can own assets, owe money and enter into contracts in their own right.

Back

Incorporated Business

Card 3

Front

Owners of the business are liable for all debts that the business may incur.

Back

Preview of the back of card 3

Card 4

Front

The liability of the owners of a business is limited to the fully paid-up value of the share capital.

Back

Preview of the back of card 4

Card 5

Front

A business owned by one person.

Back

Preview of the back of card 5
View more cards

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