Sole Trader | | A share market expert who helps investors with the purchase of shares |
Unlimited Liability | | The cost of borrowing. Usually at a percentage of the amount of the loan. |
Creditors | | An owner of a company. The owner is entitled to a share of profits and voting rights in proportion to the ownership. |
Limited Liability | | A self-employed person. He or she runs the business on their own and has sole responsibility for its success (profits) and failure (unlimited liability). |
Public Company | | Sole traders and partners who are legally liable for all monies owed to their creditors, even if this means they have to sell their personal possessions to pay for this. |
Private Company | | Business and industries in the services sector. E.g. retail, banking and education. |
Partnership | | The top manager of a company. |
Shareholder | | Business and industries that work with raw materials. E.g. Mining, fishing and farming |
Capital | | is a business owned by shareholders. Shareholders can be anyone and shares are traded openly on a stock exchange |
Dividend | | A payment of profits by a company out to its shareholders |
Interest | | How much money a business has made after it has paid its bills. |
Stockbroker | | A company issues these to represent the ownership amount an investor is buying into the business. |
Perpetual Succession | | The act of buying and selling goods or services in order to make a profit. |
Primary Sector | | is a restriction on the amount of money that can be lost from the owners of a business if it goes into bankruptcy. The owners will lose no more than the original capital amount put into the business. |
Secondary Sector | | Businesses and industries that turn raw materials into tangible everyday items. E.g. manufacturing of consumer goods and construction |
Tertiary Sector | | When running a business, the business is likely to buy goods and services from these on credit and pay later. |
CEO | | are businesses owned by 2-20 people who share the responsibilities and burdens, including unlimited liability, of the business |
Shares | | The original or new money needed by business to be able to start or to grow further. |
Business | | is a business owned by shareholders. The shares are usually owned by a small group of friends or family members and cannot be traded openly |
Profit | | This is the continuation of the running of a business despite the death, bankruptcy or other inability for a shareholder not being able to continue their ownership in the business. |