business ownership Flashcards
limited liability
if the business fails, the owners of a business are liable for what they invested into business
unlimited liability
If the business fails, the owners of a business are personally liable for all debts incurred, if the business does not have the funds to repay them, the creditors can take personal possessions.
sole trader definition adv and dis
•owned by one person
•adv-keep all profits,easy to start with little capital ,in full control
•dis-unlimited liability,pressure of full responsibility,lack of continuity(if ill business dies)
partnership definition adv and dis
•2 or more people,deed of partnership
•adv-partner bring extra expertise,split work,more capital
•dis-unlimited liability,conflict,lack of continuity(if ill business dies)
public limited business(Plc) and adv and dis
•shares to anyone bought on stock market
•must have 50k capital,annual general meeting
•adv-limited liability,more finance,credibility
•dis-no control,takeover risk,long decision making
private limited company(ltd) adv and dis
•FFE
•shareholder dividend
•adv-limited liability,more capital,continuity
•dis-profit shared,financial info seen by public,loss of control
community interest company(cic)
•Limited companies set up by private individuals to benefit society
•not aim to get profit
•adv-limited liability,grants,,good rep
•dis-tax on profit,restriction on dividend
charity
•profit made but must be invested
•adv-tax exemption,limited liability,control of business aims
•dis-complex legal,relies on volunteers,
franchise
•the right to sell someone els products
•royalty fee
•adv-provide full training,high success rate,brand recognition
•dis-little control,royalty fees,have to follow rules of franchisor
cooperatives
•democratic/run by members for members.
•adv-no restrictions on num or members,democratic,stability
•dis-limited start up,untrained management,conflict
