| 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 |
| plc | Public Limited Company |
| ltd | Private Limited Company |
| Mission Statement | A summaryu of the aims and objectives of a business |
| 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 | Where a shareholder owns the majority of shares in a business |
| 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 |
| Memorandum of Association | A document that sets out the activities of a company |
| Articles of Association | A document that sets out the rules of a company - how it should be run |
| Trading Certificate | A document issued that lets a business start trading |
| Companies House | Based in London - this is where all limited company documents have to be sent |
| Stock Exchange | The place where shares in a plc can be bought |
