Chapter 4 CIE business

2. a business that is owned and controlled by just one person who takes all of the risks and receives all of the profits.
4. often a small to medium-sized company; owned by shareholders who have limited liability. The company cannot sell its shares to the general public.
6. the finance needed when first setting up a business.
8. often a large company; owned by shareholders who have limited liability. The company can sell its shares to the general public.
9. a business that does not have legal identity separate from its owners. The owners have unlimited liability for business debts.
10. two or more businesses agree to work together on a project and set up a separate business for this purpose.
12. a business system where entrepreneurs buy the right to use the name, logo and product of an existing business.
14. a business organisation that is owned and controlled by the state.
15. a payment, out of profits, to shareholders as a reward for their investment.

1. the owners of a limited company.
3. the shareholders in a limited liability company which fails only risk losing the amount they have invested in the company and not any of their personal wealth.
5. if an unincorporated business fails, then the owners might have to use their personal wealth to finance any business debts.
7. a business formed by two or more people who will usually share responsibility for the day-to-day running of the business. Partners usually invest capital in the business and will share profits.
11. a person or organisation who owns shares in a limited company.
13. non-current assets offered as security against borrowing.