BS1- Business Sectors And Types Of Business Flashcards
Explain why financial privacy is an advantage for partnerships
helps protect and safeguard clients, their families, their businesses and their wealth
Explain what is meant by a limited liability company
They can only lose what they invest in order to pay debts
Distinguish between limited liability and unlimited liability
Limited liability you will only lose what is invested whereas unlimited liability you can lose whatever money is owed in assets and cash.
Describe two ways the sole trader and partnerships differ to limited companies
A soul trader is only owned by one person, where as a partnership have two owners
Sole traders and partnerships have unlimited liability
Explain what is meant by private limited companies
Can only sell shares to friends and family, they have limited liability
Explain why publishing companies accounts may be a disadvantage for private limited companies
Rivals will be able to see if the company is struggling failing to make payments and possibly then be able to take It over 
Explain why borrowing can be easier for private limited company and partnerships
As they can sell shares which will bring funding in
Identify one other advantage and one other disadvantage of operating as a private limited company
Advantage –they are protected by limited liability
Disadvantage-they can only sell shares to friends and family
Explain what is meant by a public limited company
They have limited liability and can sell shares to anyone.
Identify one advantage and one disadvantage of operating as a public limited company
They are able to easily get investments through selling shares
Less privacy than a soul trader
Explain where to take over may represent a disadvantage for public limited companies
Has anyone can buy shares so if they have 51% over they could take over the whole business
