Business Ownership Flashcards
What’s the profit distribution for a sole trader ?
The owners no need to share
What’s the profit distribution for a partnership ?
Shared between the owners 2-20
This can depend on deeds within the owners although
What’s the liability for sole trader and partnership ?
Unlimited liability (responsible for any debt of the business comes out of their assets)
What’s the liability for a ltd and public limited company ?
Limited liability (personal possessions are not at risk)
What’s the management and control like in a sole trader ?
Full control over the business
What the management and control like in a partnership
Shared between the owners of the business
What’s control and management like in an ltd ?
Usually the founder has control
Why is finance more difficult for a sole trader ?
They get no access the share capital
Positives of finance between a partnership ?
Access the other partners finance
What finance is available in an ltd ?
They get access to share capital from investors
Positives of finance in public limited company ?
They get access to stock exchange capital
What’s a risk of being a public limited company ?
Risk of takeover
Benefits of sole trader ownership ?
Easy to set up
Little capital required
Good control
Profits go to them
Negatives of sole trader ?
Unlimited liability
Shortage of capital
Hours of work
Continuity
Benefits of partnership ?
Lots of capital
Easy to set up
More skills
Easy workload
