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Unincorporated business

A commercial +irm that is owned privately by one or more people. One

disadvantage of owning an unincorporated business is that it results in
unlimited liability for the owners because it is not registered as a corporation.

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- Incorporated business
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A type of enterprise that has a formal and legal registration as a corporation.
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- Annual report
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A gathering of a companys accounts and data from the previous year to be

presented as a report. It usually include balance sheet, income statement, cash
+low statement, and so forth.

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- Franchise
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A franchise is the agreement between two legally independent parties which

gives a person or group of people (franchisee) the right to sell the product or
service using the trademark of another business (franchisor). The franchisee
will have to pay the franchisor fees for these rights.

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- Joint venture
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A joint venture is formed between two or more +irms that want to achieve
speci+ic objectives of a partnership (like a temporary arrangement).

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- Limited liability
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The owners of the business are only responsible for the debts of the +irm. If the
company cannot pay its debts, the owners will only lose the amount they +irst
put into the business.

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- Unlimited Liability
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The owners of the business are personally responsible for all the debts created
by the business. If the owner cannot pay for the debts, he/she can lose the
business.

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- Stock Exchange
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The stock exchange serve as the primary markets where corporations,

governments, and other incorporated bodies can raise capital by transferring
savings of the investors into productive ventures.

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- General Public vs Public Company

The general public is ordinary people in society, rather than people who belong
to a particular group. However, a public company is a business +irm in the public
(non-private) sector of an economy.

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- Stockbrokers

Licensed agent who has to pass certain tests to be certi+ied to offer stock investment
advice to investors.

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- Stock exchange
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The market in which shares of publicly held companies are issued and traded
either through exchanges or over-the-counter markets.

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- Nominal share value
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The stated value of an issued security. It is also known as face value or par value.
Nominal value in economics also refers to a value expressed in monetary terms
for a speci+ic year or years, without adjusting for in+lation.

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- Institutional investors
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A non-bank person or organisation that trades securities in large enough share

quantities or dollar amounts that they qualify for special treatment and lower
commissions.

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- Private investors
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A person or a private company one whose shares are privately held and not traded on a
stock market that makes investments.

- Pension

A +ixed amount of money paid at regular intervals to a person after they have retired
from work, or taking in consideration of past services, age, poverty or injury.

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- Articles of Association
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The articles of association de+ine the company's purpose and lays out how tasks
are to be accomplished within the organization, including the process for
appointing directors and how +inancial records will be handled.

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- Memorandum of Association
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A document that regulates a company's external activities and must be drawn up on

the formation of a registered or incorporated company.

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- Certi+icate of Incorporation
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Registered +irms birth certi+icate showing its legal name and date of
incorporation. This is also called certi+icate of registration.

- Companies Registration Of+ice

It is the of+icial address of an incorporated company, association or any other legal

entity.

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- Solicitor
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A solicitor is a legal practitioner who traditionally deals with any legal matter in court
in some jurisdictions. A person must have legally-de+ined quali+ications.

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- A take-over
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A take-over involves one business taking control of another business following a

buyout of their shares. The target business is then usually absorbed into the
operations of acquiring organisation.

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- To take over
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To acquire possession of another company.