L01 Flashcards
Name a disadvantage of partnerships
Complications of partners joining or leaving
Name 3 Business operations
1)private
2)public
3)third
Name an advantage of unincorporated associations
Offers a democratic structure with flexibility
Name an advantage of partnerships
Easy to set up
(Deed is advised)
Chain of production
The process by which a production is transformed from raw materials into a finished product, ready to be eaten
What form must be filled in to become a limited company?
Form IN01
Partnership
A formal agreement between two or more parties to manage and operate a business and share its profits
Define a company limited by guarantee
members give a guarantee to pay an agreed sum should the business go into administration
Define broad of directors
A board of directors is made up of elected or appointed members
define community interest company
A special form of non charitable limited company
which exists to primarily benefit a company
Define Companies House
Official registration of limited companies . the documents are set out to companies house
Define deed of partnership
An agreed legal document which outlines how the partnership will run - recommened
Define Limited Partnership
Where one partner has unlimited liability and oversees and runs the business
Disadvantage of private limited company
Shares can only be sold privately
Disadvantage of sole trader
Reluctant to give finance as it’s risky
Define Incorporated Business
Owners and Business have a legal difference
Define Liability
Legal responsibility
Define diviend
Left over profit payed to shareholders
Disadvantage of unincorporated associations
extra capital may be harder to obtain
Advantage of soletrader
the profits are solely owned to the individual
How many people are required to set up a PLC?
1 person
Limited Liability
The business and ownership are separate
Partnership
A formal agreement between two or more parties to manage and operate a business to share its profits
Private limited company
Shares are only for family and friends
Public limited company
Shares are available on stock market
Sole trader
A business where it’s owned by one individual
Unincorporated associations
An organisation set up though an agreement of people who come together for another reason other than to make profit
Unincorporated associations liability
Not separate legal entity
No difference between owner snd Business
Unlimited Liability
The owner and the Business are the same entity
What 2 documents must be filled for a limited company?
1)The articles of association
2)Memorandum of association
Who owns a private limited company?
Shareholder
Who controls a private limited company?
Director
Paper - sampled material
Business provides goods inferior quality compared to that of it’s competitors. What is this?
section a - Multiple choice - Question 8
1 mark
Business weaknes
Paper - sampled material
What is a combination of objectives for a third organisation
section a - multiple choice - question 18
1 mark
Increase revenue, reduce costs
Paper - sampled material
What is not a source of finance avaliable for a sole trader?
Section a -Multiple choice-Question 16
1 mark
Share issue
The term ‘delegation’ refers to:
passing responsbility for a task to a subordinate
What is a key feature of the public sector organisation?
It is funded by taxation
Define state/goverment-owned organisations
A business owned by state and controlled by the goverment and it operates in the public sector
Name 2 advantages of a state/goverment-owned organisations
1)Availability of funds
2)wide range of expertise
Namw 2 disadvantages of the state/goverment-owned organisation
1)bureaucratic
2)inflexible procedures
Define registered charities/not for profit
A business with chairtable status
Give an advantage of registered charities
1)Tax advanatges/exemption
2)Direct control of business aims
Give a disadvantage of registered chairites
1)strict charitable status test
2)financial accounts not private
Define community interest company
A cic is a company set up by the private individuals to benefit society, rather than make a profit
Give an advantage of Community interest companies
1)No dividens to pay
2)Any profit is reinvested into the Business
Give 2 disadvantages of a community interest company
1)Must pay income tax
2)finacial accounts not private
Define income tax
Tax imposed on peoples personal income
What does have a seperate legal entity mean?
Seperate legal entity means the business can sue, and be sued
Who is responsible for decision-making in a public limited company?
directors
A Public Limited Company has:
a-unlimited liability
b-must hold an AGM
c-pays income tax
d-requires a deed of partnership
b - must hold an AGM
All public limited companies must hold an AGM meeting as it’s compulsory
