1.5.4 Online businesses Flashcards
1
Q
Online businesses
A
providing products/services solely through the internet
2
Q
Pros of online businesses
A
- Easy to set up/ low set up costs -> trader could build website for a few hundred £
- Avaliable to customer 24/7 anywhere in the world
- Can be managed anywhere, owner does not need to be sat in an office or find a business premises
3
Q
What do Online businesses have access due to the internet
A
Access to global markets
4
Q
How is capital raised in a limited company
A
By selling shares to shareholders
5
Q
Each shareholder owns a share which makes them a joint of the company T/F
A
TRUE
6
Q
What do shareholders get from profits
A
Shareholders get dividends from profits
7
Q
Dividends
A
a distribution of profits by a corporation to its shareholders.
8
Q
Shareholders with more shares will have more… and get more…
A
more control and get more dividends
