Business: Chapt 4- Keywords Limited Companies and Multinationals

Unlimited and limited liability

Unlimited: Happens with Unincorporated Businesses. Owner is responsible for losses and profits for a business. If the business goes into debt, owner may have to sell their personal possessions to pay off the debts.

Limited: Happens with Incorporated businesses. The owners of liable only for their individual investments. If business goes into debt, owners are protected as they have a separate legal identity.

Private limited companies

businesses owned by shareholders but they cannot sell shares to the public

Public limited companies

Businesses shares are listed on the stock exchange and can be traded by the public.

Shareholder

an owner of shares in a company

Dividend

Distribution o the company's earning to shareholders.

AGM (Annual General Meeting)

Event where shareholders meet to discuss important decisions

Registrar of companies

List of registered companies

Memorandum of Association

Gives details of company, like location, etc

Articles of Association

deals with internal running of company.

Who runs the company?

CEO is the boss, Board of directors and chirsperson watch over the CEO

Certificate of incorporation

license to form a corporation issued by state government

Multinational Company

an organization that has offices in several countries and is legally established in multiple.

Prospectus

How a company presents itself before IPO

Regulatory Control

Implications in a company to follow regulations

Flotation/IPO

a company's ownership is transitioning from private ownership to public ownership.