Business ownership Flashcards
1
Q
Limited liability
A
the business and owner are seperate
2
Q
unlimited liability
A
the owner and business are the same entity
3
Q
Sole trader
A
Only you own it, all profit is yours, 100% ownership
unlimited liability
4
Q
Partnership
A
Owner by 2-20 people, more skills/expertise, shared profit
At least one partner has unlimited liability whilst rest have limited
5
Q
Private limited company (ltd)
A
private ownership of company by shareholders
limited liability
6
Q
Public limited company (plc)
A
everyone is free to buy shares from the company, there is limited liability
7
Q
Managements of a private limited company
A
Board of directors(51% ownership)
8
Q
How to calculate average unit costs
A
Unit costs = total costs/output
