Business Law Definitions Quiz
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Questions and Answers

What is the name of the document which contains the internal rules that the company and shareholders must follow?

Articles of Association

What is the maximum total value of shares that can be issued by a company?

Authorized share capital

What is the document that certifies ownership of a specific number of shares of stock in a corporation?

Share certificate

What is the document which contains the essential information about the company?

<p>Memorandum of Association</p> Signup and view all the answers

What is the fixed value placed on a share's certificate?

<p>Nominal value</p> Signup and view all the answers

What is the purpose of the company?

<p>Objects</p> Signup and view all the answers

What is the empty company which is set up and ready to trade?

<p>Off-the-shelf company</p> Signup and view all the answers

What is the name of the document that shows the income and expenses of the business?

<p>Profit and loss account</p> Signup and view all the answers

What is the place where people will send all official letter and notices to?

<p>Registered office</p> Signup and view all the answers

What is the name of the document that sets out in details the relationship between the business partners and their individual obligations and contributions to the partnership?

<p>Partnership agreement/partnership deed</p> Signup and view all the answers

What is the advance payment of a partner's share of profit?

<p>Drawings</p> Signup and view all the answers

What is the financial statement that summarizes a company's assets and liabilities?

<p>Balance sheet</p> Signup and view all the answers

What are things that you own and which have a financial value?

<p>Assets</p> Signup and view all the answers

What are company's legal debts or obligations that arise during the course of business operations?

<p>Liabilities</p> Signup and view all the answers

What is the amount of income that you have to pay to the government in tax?

<p>Income tax</p> Signup and view all the answers

What is the business which has its own legal personality, i.e. is a legal entity?

<p>A corporation, and the businesses it operates, is a legal entity separate from the individuals who own and operate it.</p> Signup and view all the answers

Who are people or companies who own shares in the company?

<p>Members</p> Signup and view all the answers

Who are the owners of the company?

<p>Shareholders</p> Signup and view all the answers

What is the payment of the part of a company's profits to its shareholders?

<p>Dividend</p> Signup and view all the answers

What is the value of the shares that the company has issued to shareholders?

<p>Issued share capital</p> Signup and view all the answers

What is a company with only one shareholder?

<p>Single-member company</p> Signup and view all the answers

What is the tax form you sent to tax office every year?

<p>Annual Tax Return</p> Signup and view all the answers

What is the name of a document containing up-to-date information about a company?

<p>Annual Return</p> Signup and view all the answers

What is the name of the company owned by a person or a group of people who do not sell shares to the public; shareholders have limited liability?

<p>Private limited company</p> Signup and view all the answers

What is the name of the company whose shares can be bought on the stock exchange; shareholders have limited liability?

<p>Public limited company</p> Signup and view all the answers

What is limited liability partnership?

<p>LLP</p> Signup and view all the answers

What is the abbreviation which appears at the end of the name of public limited company?

<p>plc</p> Signup and view all the answers

What is the abbreviation which appears at the end of the name of private limited company?

<p>Ltd</p> Signup and view all the answers

What is the tax paid by limited companies on their profits?

<p>Corporation tax</p> Signup and view all the answers

What is the financial market where you buy or sell company's shares?

<p>Stock Exchange</p> Signup and view all the answers

What is the name of the business where partners have limited liability?

<p>Limited liability partnership</p> Signup and view all the answers

What is the nominal value?

<p>Face value</p> Signup and view all the answers

What is the difference between market and nominal value?

<p>Premium</p> Signup and view all the answers

What is the financial responsibility with all personal assets?

<p>Unlimited liability</p> Signup and view all the answers

What is the name of the document/form that some people must fill in to give information about how much they have earned in a year and what amount of tax they need to pay?

<p>Tax return/annual self-assessment form</p> Signup and view all the answers

What is the official list of registered companies at Companies House?

<p>Register of companies</p> Signup and view all the answers

What is the legal document/form that some people must fill in to give information about how much they have earned in a year and what amount of tax they need to pay?

<p>Tax return/annual self-assessment form</p> Signup and view all the answers

What is the (UK) institution where all limited companies in the UK must be registered; an official registry of companies?

<p>Companies House</p> Signup and view all the answers

What is the (UK) officer in charge of keeping the list of limited companies registered at the Companies House?

<p>Registrar of Companies</p> Signup and view all the answers

Flashcards

Partnership Agreement

A written document that outlines the details of the relationship between business partners, including their individual responsibilities and contributions.

Drawings

An advance payment to a partner based on their share of the profits.

Balance Sheet

A financial statement summarizing a company's assets and liabilities.

Assets

Items owned by a company that have financial value.

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Liabilities

Legal debts or obligations incurred by a company during business operations.

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Income Tax

The amount of income a person or company must pay to the government.

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Legal Personality

The ability of a company to have legal rights and responsibilities, such as entering contracts and being sued.

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Legal Entity

A company that exists as a separate legal entity, distinct from its owners.

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Incorporated Business

A business structure that has its own legal personality, meaning it is a legal entity.

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Members

People or companies who own shares in a company.

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Shareholders

Owners of a company.

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Share Certificate

A legal document that certifies the ownership of a specific number of shares in a corporation.

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Share

A unit of ownership in a company.

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Sole Trader

A person who owns and runs an unregistered business by themselves.

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Partnership

An unincorporated business owned and run by two or more people.

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Dividend

A payment distributed from a company's profits to its shareholders.

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Issued Share Capital

The total value of shares that a company has issued to its shareholders.

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Single-Member Company

A company with only one shareholder.

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Annual Tax Return

A tax form submitted annually to the tax office.

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Annual Return

A document containing up-to-date information about a company.

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Private Limited Company

A company owned by a person or a group of people that does not sell shares to the public.

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Public Limited Company

A company whose shares can be bought and sold on the stock exchange.

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LLP

A business structure where partners have limited liability.

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PLC

The abbreviation used for a Public Limited Company.

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Ltd.

The abbreviation used for a Private Limited Company.

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Corporation Tax

The tax paid by limited companies on their profits.

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Stock Exchange

A financial market where you buy and sell company shares.

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Articles of Association

A document outlining the internal rules that company and shareholders must follow.

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Authorized Share Capital

The maximum total value of shares that a company can issue.

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Certificate of Incorporation

A document proving that a company is properly registered.

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Deed of Partnership

An agreement of partnership drafted by a notary.

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Expenses

Money spent on the daily costs of running a business.

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Face Value

The nominal value placed on a share certificate.

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Limited Liability Partnership (LLP)

A type of business where partners have limited liability for the company's debts.

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Partnership Agreement/Partnership Deed

A written document outlining the obligations and contributions of business partners. It establishes the terms of the partnership and legally binds the partners.

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Members/ Shareholders

Shareholders are individuals or entities who own shares in a company. They have a financial stake in the company and have certain rights, including voting rights and the potential to receive dividends.

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LLP (Limited Liability Partnership)

A partnership where each partner's liability is limited to their own investment in the business. This means personal assets are protected from business debt.

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Limited Liability Partnership

A business structure where partners have limited liability for the debts of the business, protecting their personal assets from being seized by creditors. Unlike a general partnership, it allows for more flexibility.

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Memorandum of Association

A legal document outlining the key information about a company, including its name, registered address, and the objectives of the business. It serves as a public record of the company’s fundamental details.

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Nominal Value

The fixed value assigned to a share certificate. It is usually the nominal value and reflects the initial investment made by the shareholder.

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Objects

The intended purpose or activities of a company. It describes the type of business the company plans to undertake and the markets it intends to serve.

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Off-the-Shelf Company

A pre-formed company that is ready for trading. These companies have already been registered and have the basic legal documents in place, allowing buyers to start using the company immediately.

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Personal Assets

A company's assets that are owned by its shareholders, such as their houses, cars, and savings. These assets are typically not used for business operations.

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Premium

The difference between the market value of a share and its nominal value. It represents the price above the initial value that investors are willing to pay for the share.

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Profit and Loss Account

A detailed record of a company's income and expenses. It provides a summary of the company's financial performance over a specific period, typically a year.

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Registered Office

The official address of a company where legal documents and official communications are sent. It is the address registered with the relevant authority.

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Self-Employed

An individual who runs their own business without registering it as a separate legal entity. They are personally liable for all business debts.

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Share Capital

The total value of all the shares issued by a company. This represents the total capital raised by the company through share issuance.

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Statement of Liability

A statement declaring the legal responsibilities of the shareholders in a company. It outlines their obligations, such as their liability for company debts.

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Stockbrokers

Individuals or firms that act as intermediaries between buyers and sellers of stocks. They provide advice on investments, facilitate transactions, and manage client portfolios.

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Subscribers

The individuals who initially subscribe to the shares of a company when it is first formed. They are the original investors who provide the initial capital for the company to start operating.

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Unlimited Liability

A legal situation where an individual is fully responsible for all business debts and obligations using their personal assets, even if it exceeds their investment.

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Tax Return/Annual Self-Assessment Form

A document used for reporting income and tax liabilities to the relevant tax authority. It is typically submitted annually and helps to determine how much tax is owed.

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Register of Companies

A formal list of all companies registered in a particular jurisdiction. It provides a record of company details, including the name, address, and registration number.

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Companies House

A government organization responsible for registering and regulating companies in the United Kingdom. It maintains a public record of company details and provides information about registered businesses.

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Registrar of Companies

A government official in the United Kingdom responsible for maintaining the Register of Companies. They oversee the registration of new companies, ensure compliance with legal requirements, and provide information to the public about registered businesses.

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Study Notes

Business Law - Definitions

  • Partnership Agreement/Partnership Deed: A written document detailing the relationship between business partners, outlining individual obligations and contributions.
  • Drawings: Advance payment of a partner's share of profit.
  • Balance Sheet: A financial statement summarizing a company's assets and liabilities.
  • Assets: Possessions with financial value, such as houses, cars, or money.
  • Liabilities: Company's debts or obligations arising from business operations.
  • Income Tax: Amount of income a business entity pays to the government.
  • Legal Personality: A company's capability of holding legal rights and duties, including entering contracts and being sued.
  • Legal Entity: A company existing separately from its owners.
  • Incorporated Business: A business with its own legal personality and identity.
  • Members: Shareholders who own shares in a company.
  • Shareholders: Owners of a company's shares.
  • Share Certificate: Official document verifying share ownership.
  • Share: A portion of ownership in a company.
  • Sole Trader: An individual owning and managing an unregistered business.
  • Partnership: An unincorporated business with two or more individuals combining assets and skills.
  • Dividend: Payment of company profits to shareholders.
  • Issued Share Capital: Total value of a company's issued shares.
  • Single-Member Company: A company with one shareholder.
  • Annual Tax Return: Tax form submitted yearly to the tax authority.
  • Annual Return: Document containing updated company information.
  • Private Limited Company: Company owned by individuals or a group, without public share sales; shareholders have limited liability
  • Public Limited Company: Company whose shares are traded publicly on the stock exchange; shareholders have limited liability.
  • LLP (Limited Liability Partnership): A partnership where each partner's liability is limited.
  • PLC: Abbreviation signifying a public limited company.
  • Ltd.: Abbreviation signifying a private limited company.
  • Corporation Tax: Tax on company profits paid by limited businesses.
  • Stock Exchange: Market for buying and selling company shares.
  • Articles of Association: Document containing a company's internal rules and regulations.
  • Authorized Share Capital: Maximum total value of shares a company can issue.
  • Certificate of Incorporation: Document proving a company's legal existence.
  • Deed of Partnership: Partnership agreement legally drafted by a notary public.
  • Expenses: Daily business operational costs.
  • Face Value: Nominal value of a share.
  • Limited Liability Partnership: A business structure with limited partner liability.
  • Memorandum of Association: Document detailing essential company information.
  • Nominal Value: Fixed value assigned to a share certificate.
  • Objects: Purpose of a company.
  • Off-the-Shelf Company: Pre-formed company ready for trading.
  • Par Value: Nominal value of company shares.
  • Personal Assets: Possessions owned by an individual.
  • Premium: Difference between market and nominal share value.
  • Profit and Loss Account: Detailed record of company income and expenses.
  • Registered Office: Location for official company documents.
  • Self-Employed: Individual running an unregistered business.
  • Share Capital: Total value of a company's shares.
  • Statement of Liability: Declaration regarding shareholder responsibilities.
  • Stockbrokers: Agents mediating stock buying and selling.
  • Subscribers: Initial shareholders of a company.
  • Unlimited Liability: Legal responsibility covering all personal assets.
  • Tax Return/Annual Self-Assessment Form: Document for reporting income and tax obligations.
  • Register of Companies: Formal record of all companies.
  • Companies House: UK institution where companies are registered.
  • Registrar of Companies: UK officer responsible for maintaining the company register.

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Description

Test your understanding of key business law terms with this quiz. Explore definitions such as partnership agreements, balance sheets, and legal entities. Perfect for students looking to strengthen their knowledge in business law.

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