| A | B |
|---|
| Unlimited liability | Being responsible for paying all the debts of the business - even if it means selling your personal possessions |
| Limited liability | Where the business owner is not liable for all the debts of the business - just the amount invested |
| Partnership | A group of individuals working together in a business with the aim of making a profit |
| Pty | Proprietary |
| Ltd | Limited |
| Mission Statement | A statement that captures an organisation's purpose, customer orientation and business philosophy. |
| Sole Trader | An individual who has set up in business on his or her own |
| Shareholder | An owner of a limited company who has invested money in the business in return for a share of the profits |
| Active Partner | A person who is involved in the day to day running of a partnership |
| Sleeping Partner | A person who is not involved in the day to day running of a partnership but has invested money into the business |
| Takeover | General term referring to transfer of control of a firm from one group of shareholders to another. |
| Partnership Agreement | A written agreement setting out the rights of individual partners in a partnership |
| Partnership Act | The law that sets out the rights of individual partners if there is no Partnership Agreement. |
| Dividend | The return a shareholder receives for investing in a limited company. |
| Director | An employee who is responsible for the successful management of a limited company |
| Cooperative | A business established to serve the community rather than make a profit. |
| Privatisation | Selling off a Government business enterprise to the public. |
| Unincorporated enterprises | Sole traders and partnerships |
| Private Company | Has no more than 50 shareholders. |
| Stock Exchange | An organisation providing the market-place or facility for the buying and selling of stocks and shares. |
