The Language of Business Law 7A/Foundation

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to run a business
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to have control of a business and decide how you manage it
a self-assessment form
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a form that you complete the send to the tax authority. You give all of your financial details and calculate the amount of tax that you must pay. You do this yourself
to run up a debt
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to create a debt because you borrowed money or bought something on credit
risky
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a word to describe an activity or action that is dangerous or that may fail
records and accounts
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written details of all your business activities, especially the financial details of the income and outgoing of the business
at risk
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this means to be in a situation where something unpleasant may happen
to run into trouble
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to experience difficulties (often financial) that you did not expect
income tax
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the amount of your income that you have to pay to the government in tax
spółka jawna
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general partnership
spółka komandytowa
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limited partnership
spółka limitowo-akcyjna
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limited stock partnership
an equity partner
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a partner who receives a share of the partnership profits and has the right to take part in the management of the partnership
a salaried partner
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a partner who receives a fixed amount of money each year, called a salary, paid in monthly installments. This partner does not receive any more of the profits
a sleeping partner
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a partner who contributes capital to the partnership but does not take part in the management of the business. He or she receives a share of the partnership profits. This partner is also known as a dormant partner or a silent partner
to incorporate a business means
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to set up the business and register it as a company
the founders of a company are
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the people who create the company
the members are
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the people or companies which own shares in the company
the shareholders are
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the same as the members. They are the owners of the company
a share is
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one of the equal parts of the company's capital
to hold a share means
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to own a share
share capital refers to
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the fixed value of each share
the nominal value of a share is
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the value of shares that the shareholders own
to issue a share to someone means
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to officially give that share to someone so that he or she becomes the owner of that share
to invest money in a company means
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to put money into a company by buying shares in the company
a return on an investment is
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the money that someone receives from their investment
a dividend is
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a payment of the company's profits to its shareholders
market value
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this is the amount of money that someone must pay to the company when he or she buys a share
nominal value
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this is the value that the people who set up the company decided to fix for all of the shares of the company. It is easier to understand if you think of it as the official value, not the actual value
premium this is the amount of money that someone pays in excess of the nominal value
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the difference between the market value and the nominal value
authorised share capital
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this is the maximum total value of shares, expressed in nominal terms, that the company is allowed to issue
issued share capital
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this is the value of shares, expressed in nominal terms, that the company has actually issued to its shareholders

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