Terms 1
This is a person who has total ownership of; responsibility for his or her own business.
sole trader
This governs the company’s relationship with the outside world.
Memorandum of Association
easy and inexpensive to form is a disadvantage of a sole trader business.
false it is an advantage
How many members can a partnership have?
2 to 20
a license needed for selling alcohol
Spirit License
This is the legal document that gives the company the right to go into operation.
Certificate of Incorporation
The role of each partners is something needed in the Partnership Deed.
True
which partners invest money into the business but don't take an active role in it.
sleeping/docile partners
these partners will lose only what they have invested in the business.
limited partners
another name for Joint Stock company
Private Limited Company
electric and neon signs, radios and television are examples of electronic advertising.
false.
give two disadvantages of partnership businesses.
It takes long to make decisions
Each partner has to share in the loss or consequences associated even if it is not initiated or caused by them.
Liability may be unlimited in that if the business becomes bankrupt, the owners may lose their personal belongings.
There can be difficulty of management when partners disagree.
This means that the investors or shareholders are LIABLE for debts incurred by the company, that is beyond what they have invested.
Unlimited Liability
A company must file its financial reports with____
Product, Pricing, Place, Producing are the 4 elements of Marketing Mix
False
what does being incorporated mean?
for a company to own legal business structure set apart from the individuals who founded the business
wholesalers store goods and keeps them until they are required by the retailers ensuring them a ready supply of goods when needed.
what are presales?
presales is checking the appliances that they are working before they are sold.
The auditing rules must be in the Memorandum of Association.
False, it should be in the Articles of Association
give 5 examples of sale promotion.
free samples, coupons, cash discounts, price discounts, competitions, trade shows, and loss leaders