Business Flashcards
What is a sole trader ?
Where one individual owns and runs the entire business
What is a advantage of being a sole trader
The owner has control of all the decisions made , they can work on there own times , don’t have anyone above you in the business
A disadvantage of being a sole trader
Your responsible for all the business debts , they do nor have any government protection
What does it mean by limited company (ltd)
business that is owned by its shareholders, run by directors and, most importantly, where the liability of shareholders for the debts of the company is limited.
Advantage of limited liability (ltd)
it gives individuals the opportunity to be their own boss, any new shareholders need to be invited, which protects the business from outside influence,
Disadvantage of limited liability (ltd)
there is often more paperwork, it can be very time consuming to set up, in some instances, other people are able to view the business’s financial information
What is a partnership
business that has 2 or more owners. They decide to set up and run a business between them.
What does it mean by a shareholder
A owner of shares in a company
What does it mean by a stakeholder
has a vested interest in a company and can either affect or be affected by a business’
What does it mean by public limited company (plc )
public limited company is a business that is managed by directors and owned by shareholders. A public limited company can offer shares to the public
Advantages of Public limited company
the business has the ability to raise additional finance through
share capital, the shareholders have
limited liability
Disadvantage of a public limited company
It is expensive to set up, shareholders will expect to receive a percentage of the profits as
dividends, there is a greater risk of a
hostile takeover
by a rival company as the company cannot control who buys its shares
Advantages of being in a partnership
Shared workload,money towards it,taxation,mutual responsibility
Disadvantage of being in a partnership?
One person could put more work in then the other ,conflict in decision,lax of stability
What’s a entrepreneur
a person who sets up a business or businesses, taking on financial risks in the hope of profit.
Disadvantage of being a entrepreneur
Financial risk,personal stress,more personal responsibility,long working hours
Advantages of being a entrepreneur
Overcome new challenges,rewarding career,unique experiences , get to be your own boss
What characteristics do u have to have to be a entrepreneur
leadership, vision, discipline, curiosity
What does it mean by objectives
A aim or goal you want to meet
What is organic growth
occurs when a business decides to expand its own activities by launching new products and/or entering new markets. Expanding within the business
What’s an advantage of organic growth
easier to manage and control. easier to finance through internal profits, less expensive
Disadvantage of organic growth
the time it takes to grow internally. the size of the market may restrict growth.
the constraints of your existing resources, including people, assets and finances.
What are the objectives
Pigs profit increase market share , growth , survival,service (customers service )/
What is aim
What you are trying to achieve ( over time )
