Birth of a company | Quizlet

Sole trader

A person who owns and runs a business alone and is personally responsible for its debts.

Legal entity

An organization (like a company) that has its own legal identity separate from its owners.

Incur debt

To become responsible for owing money.

Be liable for

To be legally responsible for something (e.g. a debt or damage).

Distinct from

Clearly separate or different from something else.

Veil of incorporation

The legal separation between a company and its owners, protecting owners from personal liability.

Memorandum of association

A legal document stating a company's intention to form and its basic details.

Articles of association

Rules governing how a company is run internally.

Enter into transactions

To formally engage in business deals or agreements.

Comply with

To follow rules, laws, or regulations.

Registrar of Companies

The official authority that registers and keeps records of companies.

Conducive to something

Making something likely or possible; helpful for a result.

Attainment

The act of achieving something.

Incorporate

To legally form a company as a separate entity.

Repossess

To take back property when payments are not made.

Mortgage

A loan used to buy property, where the property is security for the loan.

Mount up (about debts)

To gradually increase over time.

Slump (about profits)

To fall suddenly and significantly.

Plummet

To drop very quickly and steeply.

Share price

The cost of one share in a company.

Pick up ( about the price)

To increase or recover after a fall.

Stockbroker

A person or firm that buys and sells shares for clients.

Stake (in a company)

A share or financial interest in a company.

Debentures

Long-term loans to a company, usually with fixed interest. Unsecured bonds.

Reinforce the principle

To strengthen or support an existing rule or idea.

Overturn a decision

To reverse a legal or official decision.

Quash a decision

To officially cancel a decision, especially by a court.

Shield someone from liability

To protect someone from being legally responsible.

A mere façade

Something that appears real but hides the true situation.

To indemnify someone

To compensate someone for loss or damage.

The company's objects

The purposes or activities a company is allowed to carry out.

Compliance

The act of following laws and regulations.

Declare a dividend

To announce that a company will pay profits to shareholders.

Creditors

People or businesses to whom money is owed.

Debtors

People or businesses that owe money.

Go into liquidation

To close a company and sell its assets to pay debts.

Solvent

Able to pay debts as they fall due.

Breach of company law

A violation of legal rules governing companies.

Personally liable

Legally responsible as an individual (not protected by a company structure).