Share Business and Work Vocabulary: Mindset 2 unit 5
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What does "corporation tax" refer to?
Corporation tax refers to the tax paid by companies on their business profits.
What is the difference between "corporation tax" and "income tax"?
Corporation tax is a tax on business profits, whereas income tax is a tax on personal earnings.
How do "personal earnings" differ from "business profits"?
Personal earnings refer to the income individuals earn, while business profits refer to the earnings a business generates after expenses.
What does it mean to "set up" a business?
To "set up" a business means to establish or start a business, often involving legal registration, planning, and organizing resources.
What are the tax responsibilities for a limited liability company?
Pay corporation tax on its profits, submit annual accounts to Companies House, and ensure that shareholders submit their own personal tax assessments separately
How does "unlimited liability" affect a sole trader?
Unlimited liability means that if a sole trader's business goes bankrupt, they are personally responsible for the debts and may lose personal assets such as the
What is the main advantage of a "limited liability partnership" (LLP)?
The main advantage of an LLP is that it combines the flexibility of a partnership with the protection of limited liability, so partners are only liable for what
What does it mean to "negotiate a deal" in business?
It means to discuss the terms and conditions of an agreement with another party to reach a mutually acceptable outcome, often involving compromises or adjustmen
What is the main disadvantage of running a limited liability company compared to a sole trader?
A limited liability company requires more administrative work, including submitting accounts and paying corporation tax.
What must partners in a limited liability partnership (LLP) do that simple partnerships do not?
Partners in an LLP must register the business with Companies House and submit annual returns and accounts.
What is a key advantage of being a sole trader?
The sole trader is their own boss and doesn't have to share earnings with anyone.
What tax does a limited liability company pay, and how is it different from the tax a sole trader pays?
A limited liability company pays corporation tax on business profits, which is usually lower than the income tax paid by sole traders.
What are the three types of business structures discussed in the lecture?
Limited liability company, partnership, and sole trader.
How do "shareholders" benefit from investing in a company?
Shareholders benefit by potentially receiving dividends (a share of the company’s profits) and capital gains (increase in the value of their shares).
What does the term "startup" refer to in the business world?
A startup is a newly established business, typically in the early stages of operation, focusing on developing a unique product or service with the aim of growth
What is the role of a "chief executive officer" (CEO) in a company?
The CEO is the highest-ranking executive in a company, responsible for overall strategy, decision-making, leadership, and ensuring the company's objectives are
