Business Start Up Flashcards
1
Q
Sole Trader Adv/Disadv
A
Easy to set up
Profits
Confidential
Full Control
Unlimited Liability
difficult to run
Difficult to raise money
2
Q
Partnership Adv/Disadv
A
Simplicity
Easier to raise money
Expertise
Confidential
Unlimited liability
Profits are shared
Disputes
Slower decision-making
3
Q
Private Limited Company Adv/Disadv
A
Limited liability
Easier to raise capital
Knowledge, skills, expertise
Less tax
Complicated to set up
No confidentiality
profits are shared
4
Q
Stages involved in forming a Private Limited Company
A
The Memorandum of Association The Articles of Association Form A1 Registrar of Companies Certificate of Incorporation
5
Q
Job production
A
Individual and unique - Sandwich in café
6
Q
Batch production
A
Same for all customers - newspapers
7
Q
Mass production
A
Continuously 24/7 - cigarettes
8
Q
Importance of business plan
A
Focus on the future
Anticipate Problems
Attract Investment
Control
