Upgrade to remove ads
Companies - legal forms
Terms in this set (25)
A business owned and operated by one individual.
An association of two or more persons who act as co-owners of a business
A type of association, whereby there is a complete sharing of the management of a business. Each of the owners has unlimited liability.
A type of association, whereby at least one person has unlimited liability, the others have limited liability.
A legal entity, created by the State, whose assets and liabilities are separate from its owners, whereby the owners have limited liability.
private limited company (Ltd.) / private corporation
A type of legal entity which is owned by one or a few people who are closely involved in managing the business.
public limited company (plc) / public corporation
A type of legal entity which is owned by anyone who buys a 'part' of it.
share / stock
When you are the holder of this, it proves that you own a 'part' of a company.
Initial Public Offering (IPO)
The first time a company goes to the stock market to raise capital.
preference share / preferred stock
The owners of this type of share have no say in the running of the business but have a claim to profits before any other owners.
ordinary share / common stock
The owners of this type of share have voting rights but do not have any guaranteed right to a share of the profits.
The share of the profits any shareowner might get.
A certificate issued by a company to raise finance. The holder of the certificate has simply lent the company money and owns no part of the company.
What the holder of a corporate bond would get in return for lending the money.
Board of Directors
A group of individuals who oversee the general operation of the business and set the long-term objectives.
internal or executive directors
Directors who are employees and who have a day-to-day say in the operation of the business.
non-executive directors / external directors
Members of the board of directors who only have a controlling function.
Managing Director (MD) / Chief Executive Officer (CEO)
The top person with a day-to-day say in the operations.
A company owned to at least 51% by another organisation.
A partnership between companies established for a specific project or for a limited period of time.
The combination of two companies to form a new company.
The purchase of one company by another.
A business model whereby a company grants another or an individual the authorisation to sell or distribute their goods with certain contractual limitations/obligations.
The company which grants a franchise.
The company/individual that has been granted a franchise
YOU MIGHT ALSO LIKE...
Business Law: Session 7 Business Organisations
Chapter 5 Forms Of Business Ownership
WHU Englisch 1 Companies - legal forms