Liability Flashcards
What is liability?
Being legally responsible for something.
What is unlimited liability?
The entrepreneur is at risk of losing their personal assets if in debt.
What are sole traders?
The only owner of a business, 100% responsible, unlimited Liability, long hours, workload can be unmanageable.
What is a Partnership?
2 to 50 people come together, open a company with a contract, unlimited liability, more finance.
What is a Private Limited Company (LTD)?
Limited liability, sells shares to family and friends only, time consuming.
What is a Public Limited Company (PLC)?
Can sell shares on stock market so at risk of takeover, limited liability.
What is in a Business Plan?
Aims and objectives, sources of finance, overview of business costs, market research, cash flow, cash forecast, profit margins.
