3.1.2 different business forms Flashcards
what is an Unincorporated and examples of some
The owner is the business - no legal difference
Owner has unlimited liability for business actions (including debts)
Most unincorporated businesses operate as sole traders
who : partnership and sole trader
what is an Incorporated business
Legal difference between the business (company) and the owners
Owners (shareholders) have limited liability
Most incorporated businesses operate as private limited companies
wtf is Unlimited Liability
Business owner/s personally responsible for the debts and liability of the business
importance of limited liability
protects shareholders from the companies failures. they will only loose their investme
what is a public sector company
A relatively small number of companies are owned or controlled by the Government
E.g. RBS (nationalised), Network Rail
Public Sector Organisations
These are funded by central & local government, but may still levy charges for some services
E.g. NHS, Highways Agency, TeachFirst
not for profit
a company that operates for the good of the community. has social aims. they aim to make money but reinvest all profits.
