Business Flashcards
What is a quotation?
A quotation is a form listing available products prices and terms and conditions.
What are the 5 stages for vehicle insurance claims?
- Notification
- Documentation
- Assessment
- Settlement
- Resolution
settlement= payment resolution= Accept payment or negotiations continue
What is indemnity?
Payment from insurance claims
What are the 5 stages of medical insurance claims?
- Treatment
- Claim initiation
- Adjudication
- Payment
- Resolution
Adjudication= Review by insurance
What is enquiry?
It’s the letter the buyer sends to ask if they have a product they’re looking for.
What is a tender?
It’s an invitation for companies to bid by a supplier.
What is does an E&OE* note mean?
*errors and omissions expected.
It means that if the trader made an error they can still correct it later.
What is an unincorporated business?
Its a business that doesn’t have a seperate legal identity
What is a seperate legal identity?
It refers to a business where an owner has limited liability to the business.
What does liability mean?
What you owe to others.
What types of businesses are required to be unincorporated?
Sole traders and partnerships.
Why are partnerships common with law and clinics?
To share knowledge and capital among proffesionals.
What is a partnership?
It’s a group of between 2 and 20 people who run a business together.
What types of businesses have unlimited liability?
Partnerships and sole traders.
What is a private limited company?
It’s a company that exists seperate from it’s owners with up to 50 shareholders.
What are some advantages for private limited companies?
- Capable of larger capital for expansion
- Limited liability
- Management control possible*
- Has a seperate legal identity*
*1 due to limited shareholders * 2 can sign contracts and sue/be sued
What are sole traders/ sole proprietorship?
They are businesses owned by only one person
What are some advantages of sole traders?
- There are few regulations to worry about
- Owner has complete control
- Owner has freedom to make personal and business decisions
- Close to customers
- Complete secrecy
What are some disadvantages of sole traders?
- Lack or no suggestions on decisions
- Unlimited liability
- Limited capital
- Unable to give training to staff
- No continuity
- No one to take over if owner is incapacitated
What is legal continuity?
It’s the ability for a business to continue existing after the owners death.
What is the role of shareholders in a company?
To vote for the board of directors
What are public limited companies?
They are companies which sell shares to the public
What are the advantages of public limited companies?
- Capable of larger business expansion
- Limited liability
- Seperate legal identity
- No restriction on buying/selling shares
- Banks and suppliers give leniency*
* cos it has large asset base and sizable business volume
What are the disadvantages of public limited companies?
- Legal formalities
- Lots of regulations
- Hard to control and manage
- Expensive to sell shares *
- Possibility of rivals buying too many shares
*Listing shares is expensive
Who do plc’s and public limited companies have to give financial info to?
ROC (Registrar of Companies)
What are the advantages of partnerships?
- Each partner contributes capital
- Able to divide responsibility/ work
- Mutual motivation boost
What are the disadvantages of partnerships?
- Unlimited liability
- No seperate legal identity
- Disagreements may be time consuming
- Partners may be unhelpful
- Limited number of partners
