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Business Basics Notes

This document provides definitions for key business terms and describes three common types of business ownerships: sole proprietorships, partnerships, and private limited companies. A sole proprietorship is a business owned and operated by one individual, with income and losses reported on their personal tax return. A partnership is a business owned by two or more individuals who share management and profits. A private limited company, or LTD, limits owner liability to their shares and has restrictions on the number of shareholders and trading of shares.

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673 views1 page

Business Basics Notes

This document provides definitions for key business terms and describes three common types of business ownerships: sole proprietorships, partnerships, and private limited companies. A sole proprietorship is a business owned and operated by one individual, with income and losses reported on their personal tax return. A partnership is a business owned by two or more individuals who share management and profits. A private limited company, or LTD, limits owner liability to their shares and has restrictions on the number of shareholders and trading of shares.

Uploaded by

Georgia Benjamin
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Business Basics

Grade 9
Topic: Types of Business Ownerships

Term Definition
1. Business This is a moneymaking activity.

2. Capital This is wealth in the form of money or other assets owned by a person
or organization or available for a purpose such as starting a company or investing.
3. "rates of return on invested capital were high".

4. Liability - a thing for which someone is responsible, especially an amount of money


owed

5. Limited liability - the condition by which shareholders are legally responsible for the
debts of a company only to the extent of the nominal value of their shares.

6. Unlimited liability - This refers to the legal obligations general partners and sole
proprietors because they are liable for all business debts if the business can't pay
its liabilities.

7. Collateral something pledged as security for repayment of a loan, to be forfeited in


the event of a default.

8. loan - A thing that is borrowed, especially a sum of money that is expected


to be paid back with interest.

Types of businesses
Sole proprietorship: A business that legally has no separate existence from its owner.
Income and losses are taxed on the individual's personal income tax return. The sole
proprietorship is the simplest business form under which one can operate a business.

Partnership: A legal form of business operation between two or more individuals who share
management and profits.

private limited company, or LTD, is a type of privately held small business entity, in which
owner liability is limited to their shares, the firm is limited to having 50 or fewer
shareholders, and shares are prohibited from being publicly traded.

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