getting started in business - 21

Question 1

4 decisions to be made

Answer 1

1- ownership structure of the business
2- location
3- sources of finance
4- production method

Question 2

sole trader

Answer 2

a business owned and run by one person
entrepeneur makes all the business decisions
quick and easy business structure to set up
suited to small businesses

Question 3

advantages to sole trader

Answer 3

easy to set up
keep all profits
decision making
confidentiality

Question 4

disadvantages to sole trader

Answer 4

unlimited liability
no continuity of existence
stress
lack of capital

Question 5

private limited company

Answer 5

under companies act 2014 there are a number of variations of a PLC
PLC shares allows for between 1 and 149 people to be owners of the business
A PLC must register with the CRO

Question 6

advantages of PLC

Answer 6

limited liabilty
continuity of existence
seperate legal entity
taxation

Question 7

disadvantages of PLC

Answer 7

expensive to set up
profits are shared
less confidentiality
time

Question 8

partnership

Answer 8

business with between 2 or 20 partners
must register with the revenue commissioners and also register with the CRO
each partner pays self assessment income tax on their share of partnerships profits

Question 9

advantages of partnership

Answer 9

easy to set up
decision making
increased capital
confidentiality

Question 10

disadvantages of partnership

Answer 10

unlimited liability
profits
decision making
legal entity

Question 11

co-operative

Answer 11

set up and owned by members rather than shareholders
operates for the benefit of its members and registers with the registry of friendly societies
each member has an equal say in how the business is run
must have at least seven members

Question 12

advantages

Answer 12

limited liability
taxation
continuity of existence
democratic decision making

Question 13

disadvantages of co-op

Answer 13

lack of capital
registration
profits
confidentiality