Limited Liability + Franchises Flashcards
1
Q
What is Limited Liability?
A
Entrepreneur risk is limited to the amount they invested. It is incorporated!
1
Q
What is incorporated?
A
Business and owners are seperate!
2
Q
List 2 types of Limited Liability?
A
- Private Limited Companies (LTD)
- Public Limited Companies (PlC)
3
Q
What is Private Limited Companies (LTD)?
A
Incorporated business own by shareholders.
4
Q
How is LTD registred at?
A
registred at Companies house!
5
Q
Which 2 documents that private limited companies need to summit?
A
- Memorandum of Association
- Articles of Association
6
Q
What is franchises?
A
One business (Franchisor) gives permission to an entrepreneur (the franchisee), to set up a business!
7
Q
List 5
What does Franchisor provides?
A
- Help
- Support
- Training
- Equipment
- Back up services
8
Q
List 2
What does Franchisor gains?
A
- Money from the newcomer (known as capital)
- percentage of the sales (known as royalty payment)
