Source: https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/1-2-10-diagnostic-misconceptions-owners-vs-shareholders [Revision notes](https://senecalearning.com/en-gb/revision-notes.md) › [IGCSE](https://senecalearning.com/en-gb/revision-notes/igcse.md) › [Business](https://senecalearning.com/en-gb/revision-notes/igcse/business.md) › [Edexcel IGCSE](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse.md) › Diagnostic Misconceptions - Owners vs Shareholders # Diagnostic Misconceptions - Owners vs Shareholders Business: Edexcel IGCSE, topic 1.2.10 ## Test yourself on Diagnostic Misconceptions - Owners vs Shareholders - What is the correct word used to describe someone who owns a limited company? - What is the correct word used to describe the people who sit on the Board of Directors of a business? - What is the correct word used to describe an individual who owns a sole trader business? [Practise this topic for free](https://app.senecalearning.com/classroom/course/842fa0dc-132a-4180-9456-45b3931aca6b/section/0f2e6401-ac2e-49af-aff5-0e7dc3a8260d/session) - Previous topic: [1.2.9 Diagnostic Misconceptions - Company vs Business](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/1-2-9-diagnostic-misconceptions-company-vs-business.md) - Next topic: [1.3.1 Sectors](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/1-3-1-sectors.md) ## Business: Edexcel IGCSE contents ### 1 Business Activity & Influences on Business - 1.1 Business Objectives - [1.1.1 Business Aims](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/1-1-1-business-aims.md) - [1.1.2 Business Objectives](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/1-1-2-business-objectives.md) - [1.1.3 Business Objectives Change Over Time](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/1-1-3-business-objectives-change-over-time.md) - [1.1.4 End of Topic Test - Business Aims](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/1-1-4-end-of-topic-test-business-aims.md) - [1.1.5 Diagnostic Misconceptions - Profit](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/1-1-5-diagnostic-misconceptions-profit.md) - 1.2 Types of Organisations - [1.2.1 Sole Traders & Partnerships](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/1-2-1-sole-traders-and-partnerships.md) - [1.2.2 Limited Companies](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/1-2-2-limited-companies.md) - [1.2.3 Limited Liability](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/1-2-3-limited-liability.md) - [1.2.4 Unlimited vs Limited Liability](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/1-2-4-unlimited-vs-limited-liability.md) - [1.2.5 Not For Profit & Franchises](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/1-2-5-not-for-profit-and-franchises.md) - [1.2.6 Multinational Companies](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/1-2-6-multinational-companies.md) - [1.2.7 End of Topic Test - Business Ownership](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/1-2-7-end-of-topic-test-business-ownership.md) - [1.2.8 Application Questions - Business Ownership](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/1-2-8-application-questions-business-ownership.md) - [1.2.9 Diagnostic Misconceptions - Company vs Business](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/1-2-9-diagnostic-misconceptions-company-vs-business.md) - [1.2.10 Diagnostic Misconceptions - Owners vs Shareholders](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/1-2-10-diagnostic-misconceptions-owners-vs-shareholders.md) - 1.3 Classification of Businesses - [1.3.1 Sectors](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/1-3-1-sectors.md) - 1.4 Decisions on Location - [1.4.1 Location](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/1-4-1-location.md) - 1.5 Business & the International Economy - [1.5.1 Globalisation](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/1-5-1-globalisation.md) - [1.5.2 Exchange Rates](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/1-5-2-exchange-rates.md) - 1.6 Government Objectives & Policy - [1.6.1 Government Objectives](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/1-6-1-government-objectives.md) - [1.6.2 The Government & Business Activity](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/1-6-2-the-government-and-business-activity.md) - [1.6.3 Interest Rates](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/1-6-3-interest-rates.md) - [1.6.4 Interest Rates - Calculations](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/1-6-4-interest-rates-calculations.md) - [1.6.5 Diagnostic Misconceptions - Recessions](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/1-6-5-diagnostic-misconceptions-recessions.md) - 1.7 External Factors - [1.7.1 External Factors](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/1-7-1-external-factors.md) - 1.8 What Makes a Business Successful? - [1.8.1 Measuring Success](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/1-8-1-measuring-success.md) - [1.8.2 Reasons for Failure](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/1-8-2-reasons-for-failure.md) ### 2 People in Business - 2.1 Internal & External Communication - [2.1.1 Communication](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/2-1-1-communication.md) - 2.2 Recruitment & Selection Process - [2.2.1 Types of Employment](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/2-2-1-types-of-employment.md) - [2.2.2 Recruitment Stages](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/2-2-2-recruitment-stages.md) - [2.2.3 Effective Recruitment](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/2-2-3-effective-recruitment.md) - [2.2.4 Legal Controls Over Employment](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/2-2-4-legal-controls-over-employment.md) - [2.2.5 Diagnostic Misconceptions - Internal Recruitment](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/2-2-5-diagnostic-misconceptions-internal-recruitment.md) - 2.3 Training - [2.3.1 Training](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/2-3-1-training.md) - 2.4 Motivation & Rewards - [2.4.1 Motivation in the Workplace](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/2-4-1-motivation-in-the-workplace.md) - [2.4.2 Financial & Non-Financial Methods](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/2-4-2-financial-and-non-financial-methods.md) - [2.4.3 End of Topic Test - The Workforce](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/2-4-3-end-of-topic-test-the-workforce.md) - [2.4.4 Application Questions - The Workforce](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/2-4-4-application-questions-the-workforce.md) - [2.4.5 Diagnostic Misconceptions - Money](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/2-4-5-diagnostic-misconceptions-money.md) - 2.5 Organisation Structures - [2.5.1 Organisational Structures](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/2-5-1-organisational-structures.md) - [2.5.2 Centralised vs. Decentralised Structures](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/2-5-2-centralised-vs-decentralised-structures.md) - [2.5.3 Tall & Flat Organisations](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/2-5-3-tall-and-flat-organisations.md) - [2.5.4 Functional Areas Within a Business](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/2-5-4-functional-areas-within-a-business.md) - [2.5.5 End of Topic Test - Org Structure](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/2-5-5-end-of-topic-test-org-structure.md) ### 3 Business Finance - 3.1 Sources of Finance - [3.1.1 Internal & External Sources of Finance](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/3-1-1-internal-and-external-sources-of-finance.md) - [3.1.2 Factors Affecting Sources of Finance](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/3-1-2-factors-affecting-sources-of-finance.md) - 3.2 Cash Flow Forecasting - [3.2.1 Cash Flow](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/3-2-1-cash-flow.md) - [3.2.2 Consequences of Cash Flow Problems](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/3-2-2-consequences-of-cash-flow-problems.md) - [3.2.3 Cash Flow - Calculations](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/3-2-3-cash-flow-calculations.md) - [3.2.4 Solutions to Cash Flow Problems](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/3-2-4-solutions-to-cash-flow-problems.md) - [3.2.5 Diagnostic Misconceptions - Cash Flow](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/3-2-5-diagnostic-misconceptions-cash-flow.md) - 3.3 Cost & Break-Even Analysis - [3.3.1 Costs, Revenue & Profit](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/3-3-1-costs-revenue-and-profit.md) - [3.3.2 Profit, Average Unit Cost & Interest](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/3-3-2-profit-average-unit-cost-and-interest.md) - [3.3.3 Costs - Calculations](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/3-3-3-costs-calculations.md) - [3.3.4 Revenue - Calculations](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/3-3-4-revenue-calculations.md) - [3.3.5 Break-Even Analysis](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/3-3-5-break-even-analysis.md) - [3.3.6 Profit & Losses - Calculations](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/3-3-6-profit-and-losses-calculations.md) - [3.3.7 End of Topic Test - Finance](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/3-3-7-end-of-topic-test-finance.md) - [3.3.8 Grade 9 - Finance](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/3-3-8-grade-9-finance.md) - [3.3.9 Diagnostic Misconceptions - Fixed Costs](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/3-3-9-diagnostic-misconceptions-fixed-costs.md) - [3.3.10 Diagnostic Misconceptions - Break-even](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/3-3-10-diagnostic-misconceptions-break-even.md) - 3.4 Financial Documents - [3.4.1 Financial Statements](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/3-4-1-financial-statements.md) - [3.4.2 Income Statement](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/3-4-2-income-statement.md) - [3.4.3 Understanding Business Performance](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/3-4-3-understanding-business-performance.md) - 3.5 Account Analysis - [3.5.1 Business Calculations](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/3-5-1-business-calculations.md) - [3.5.2 Gross Profit - Calculations](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/3-5-2-gross-profit-calculations.md) - [3.5.3 Net Profit - Calculations](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/3-5-3-net-profit-calculations.md) - [3.5.4 Business Calculations 2](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/3-5-4-business-calculations-2.md) - [3.5.5 Business Calculations 3](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/3-5-5-business-calculations-3.md) - [3.5.6 Liquidity](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/3-5-6-liquidity.md) ### 4 Marketing - 4.1 Market Research - [4.1.1 Market Research](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/4-1-1-market-research.md) - [4.1.2 Forms of Market Research](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/4-1-2-forms-of-market-research.md) - 4.2 The Market - [4.2.1 Customer Needs](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/4-2-1-customer-needs.md) - [4.2.2 Satisfying Customer Needs](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/4-2-2-satisfying-customer-needs.md) - [4.2.3 Market](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/4-2-3-market.md) - [4.2.4 The Competitive Environment](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/4-2-4-the-competitive-environment.md) - [4.2.5 Market Segmentation](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/4-2-5-market-segmentation.md) - [4.2.6 Market Mapping - Price vs Quality](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/4-2-6-market-mapping-price-vs-quality.md) - [4.2.7 End of Topic Test - Marketing](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/4-2-7-end-of-topic-test-marketing.md) - [4.2.8 Application Questions - Marketing](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/4-2-8-application-questions-marketing.md) - [4.2.9 Diagnostic Misconceptions - Competition](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/4-2-9-diagnostic-misconceptions-competition.md) - 4.3 The Marketing Mix - [4.3.1 Price](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/4-3-1-price.md) - [4.3.2 Price Penetration](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/4-3-2-price-penetration.md) - [4.3.3 Other Forms of Pricing](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/4-3-3-other-forms-of-pricing.md) - [4.3.4 Product Design](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/4-3-4-product-design.md) - [4.3.5 The Product Life Cycle](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/4-3-5-the-product-life-cycle.md) - [4.3.6 Extending Existing Products](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/4-3-6-extending-existing-products.md) - [4.3.7 New Products](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/4-3-7-new-products.md) - [4.3.8 Benefits and Risks of New Products](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/4-3-8-benefits-and-risks-of-new-products.md) - [4.3.9 Promotion](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/4-3-9-promotion.md) - [4.3.10 Public Relations and Sales Promotion](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/4-3-10-public-relations-and-sales-promotion.md) - [4.3.11 Sponsorship & Social Media](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/4-3-11-sponsorship-and-social-media.md) - [4.3.12 Product Placements](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/4-3-12-product-placements.md) - [4.3.13 Promotional Mix](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/4-3-13-promotional-mix.md) - [4.3.14 Place](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/4-3-14-place.md) - [4.3.15 Place 2](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/4-3-15-place-2.md) - [4.3.16 Place 3](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/4-3-16-place-3.md) - [4.3.17 M-Commerce](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/4-3-17-m-commerce.md) - [4.3.18 Benefits & Drawbacks of M-Commerce](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/4-3-18-benefits-and-drawbacks-of-m-commerce.md) - [4.3.19 End of Topic Test - Marketing Mix](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/4-3-19-end-of-topic-test-marketing-mix.md) - [4.3.20 Grade 9 - Marketing Mix](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/4-3-20-grade-9-marketing-mix.md) - [4.3.21 Diagnostic Misconceptions - Decreasing Price](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/4-3-21-diagnostic-misconceptions-decreasing-price.md) - [4.3.22 Diagnostic Misconceptions - Advertise vs Promote](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/4-3-22-diagnostic-misconceptions-advertise-vs-promote.md) - [4.3.23 Diagnostic Misconceptions - Social Media](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/4-3-23-diagnostic-misconceptions-social-media.md) ### 5 Business Operations - 5.1 Economies & Diseconomies of Scale - [5.1.1 Economies of Scale](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/5-1-1-economies-of-scale.md) - [5.1.2 Diagnostic Misconceptions - Economies of Scale](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/5-1-2-diagnostic-misconceptions-economies-of-scale.md) - 5.2 Production - [5.2.1 Production Processes](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/5-2-1-production-processes.md) - [5.2.2 Flow and Batch Production](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/5-2-2-flow-and-batch-production.md) - [5.2.3 Production Efficiency](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/5-2-3-production-efficiency.md) - [5.2.4 Technology & Production](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/5-2-4-technology-and-production.md) - [5.2.5 Diagnostic Misconceptions - JIT vs JIC](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/5-2-5-diagnostic-misconceptions-jit-vs-jic.md) - 5.3 Factors of Production - [5.3.1 Factors of Production](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/5-3-1-factors-of-production.md) - 5.4 Quality - [5.4.1 Importance of Quality](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/5-4-1-importance-of-quality.md) - [5.4.2 Identifying Quality](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/5-4-2-identifying-quality.md) - [5.4.3 Total Quality Management](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/5-4-3-total-quality-management.md) - [5.4.4 End of Topic Test - Operational Decisions](https://senecalearning.com/en-gb/revision-notes/igcse/business/edexcel-igcse/5-4-4-end-of-topic-test-operational-decisions.md)