Business Ownership Flashcards
What is a private company
Are individuals or groups of individuals who set up their own company. There goal is to make profit
What are public sector companies
Are state owned. There goal is to provide jobs and services for other people
What is a sole trader
Most common type of private business eg. Hairdresser and butcher.
What is unlimited liability
When all the risk is on one individual and they are personally responsible for all debts
Franchise
Is a business that already exists
How does a franchise work
The owner sells the licence to an individual
Franchiser
Owns the licence
Franchisee
Pays to use it
Limited liability
Usually associated with franchise, it means there is a less risk as it can’t be personal liability
Private ltd companies
Has ltd after its name. It is owned by anyone who buys shares in the company. Shareholders own the business
Collateral security
Is something of value that the bank will take if you can’t pay pack your loan.
What certificate is giving by CRO that makes a company a seperate legal company
Certificate of incorporation
