Business Flashcards
What are the different forms of business ownership?
The different types of business ownerships are sole trader, partnership and private companies.
Explain the advantages and disadvantages of sole trader.
A sole trader legal structure is owned by one person and that one person makes all the decisions. The owner keeps all the profits for themselves and it is cheap to set up, however it can be difficult to obtain finance and unlimited liability is at play.
Define business ethics.
Business ethics is the moral guidelines and principles a business should follow. A business with good ethical standards will create more profit.
What are some ways a business can operate ethically?
Introduce an ethics committee to discuss ethical issues within the workplace, establish partnerships with suppliers that have ethical policies in place.
