construction commercial and buisness principles Flashcards
What does SME stand for?
Small and Medium Enterprises
What are the types of businesses mentioned?
- SMEs
- Private companies
- Non for profit (C.S.R)
- CIC (Community Interest Company)
- Public organisations
- Charitable organisations
- Limited companies
What is a limited company?
Officially registered in the UK with Companies House and regulated by the government
What is one advantage of a limited company?
- Liability limited to capital
- Complete control
- Legal entity
- Paid in salaries or dividends
What is one disadvantage of a limited company?
- Public scrutiny
- Financial accounts are published
- Corporation tax
Give an example of a public limited company.
Vivary group
How many homes does Vivary group deliver annually?
Around 12,000 homes
What was Vivary group’s profit before tax in 2020?
Approximately 143.9 million
What is a sole trader?
An individual trading under a business name, termed self-employed, personally liable for debts
What is one advantage of being a sole trader?
- Can work any hours
- Keeps all profits
- No shareholders
- Privacy
What is one disadvantage of being a sole trader?
- No holiday pay
- No company benefits
- All liabilities are the owner’s
- No regular salary
- Must keep accounts and pay tax and national insurance
What are examples of sole traders?
- Carpenters
- Plumbers
- Electricians
- Plasterers
- Bricklayers
What is a partnership?
When individuals want to do business together
What is one advantage of a partnership?
- Shared workload
- Privacy
- Increased capacity
- Partners can cover absence of each other
- Limited regulations
What is one disadvantage of a partnership?
- Unlimited liability for any debts across all partners
- Possible friction between partners
- Equally liable for each other’s actions
Give an example of a partnership.
Foster and Partners
What is a non-profit organization?
An organization that does not declare profit as all margins are put back into the business
What is one advantage of a non-profit organization?
- No personal liability
- Social ethics
- Volunteers
- Tax advantages
- Motivated employees
What is one disadvantage of a non-profit organization?
- Accounts have to be filed
- Annual paperwork has to be produced
- Data is in the public domain
What is a Community Interest Company (CIC)?
A company set up to benefit its community and not market forces
What is one advantage of a CIC?
- Owned by the community
- Limited liability
- Social ethics
- Benefit community who will invest
What is one disadvantage of a CIC?
- Annual compliance paperwork is required
- Data in public domain
- Restrictions on shops and dividends
Give an example of a Community Interest Company.
Opportunity Beardley
