Unit 2

Tutorial Preparation Questions

1.) What are the differences between the 3
business structures?
2.) What do the following key terms mean:
a. Unlimited liability and limited liability?
b. Legal entity?
c. Mutual agency?
d. Unlimited life and limited life?
e. Ownership of assets?
3.) Who are Directors? What role do they play in
the company?
4.) What does it mean by share capital?
5.) Are reserves amounts of cash? Where does it
come from?
6.) What is a bonus share?
7.) What does it mean by rights issues?
8.) What is a retained profit? How does it differ
from a Net Profit?