business ownership Flashcards
what is unlimited liability? [2]
the full responsibility for any owed money (debts) -
may have to sell personal possessions to pay off debts
what is a sole trader? [1]
1 person in charge of the business
give 2 benefits of being a sole trader[2]
quick to set up
make all decisions
keeps all profit
choice of work hours
choice of products & services to sell
give 2 disadvantages of being a sole trader [2]
workload/long hours
no cover for illness or holidays
unlimited liability
more difficult to raise finance
limited skill set
what is a partnership?[1]
2-20 people in charge of the business
give 2 benefits of being in a partnership [2]
easy & low cost set up
shared desicions & control
shared skills & workload
cover for illness & holidays
shared risk - borrowing power is greater
give 2 disadvantages of being in a partnership [2]
shared profit
disagreement between skateholders
slower desicions
unlimited liability
what is the deed of partnership? [1]
an agreement setting out rules of the partnership bettwen partners
what is an enterpreneur? [1]
someone willing to take risks involved in starting a anew business
what qualities might an enterpreneur need? [3]
resilient
hardworking
persistance
what is an enterpreneurship? [1]
refers to the ability to be and enterpreneur -
to take riskes to develop a business idea
what is social enterprise? [1]
a not-for-profit business set up to help society
what is an LTD? [1]
private limited company - friends & family
what is a PLC? [1]
public limited company - anyone can own shares
what type of liability do LTDs and PLCs have? [1]
limited liability
