management and ownership Flashcards
what is the definition of managed pubs and bars?
managed pubs and bars and owned by a brewery. the manager and staff are employed by the brewery.
tenanted or leased pubs and bars are owned by a ______ , but leased to a ______ , who holds the _____ for the pub. The manager ___ the pub or bar ________ . the pub sells the ______ beer and ales.
brewery. licensee. licence. runs. brewery's.
what does it mean if a pub is free house?
a free house is owned and managed by a licensee who is able to sell beverages from any supplier.
give three advantages of owning a sole trader business.
1) They do not require a lot of money and are easy to set up
2) The owner can keep all the profits as it is an individual set up
3) The person are their own boss meaning they can make all their own decisions and can be flexible
name 3 disadvantages of setting up a partnership business.
1) Unlimited liability
2) Problems is someone leaves or joins
3) Legal costs of drawing up the ‘deed of partnership’
what are three advantages of limited companies?
1) The shareholders receive a share of the profits
2) It’s easier to raise funds to help the business grow
3) They are not responsible for the debt
give 3 disadvantages of a sole trader business.
1) No one to share risks and decisions with
2) Unlimited liability
3) The commitment is high so its hard to take time off
state three advantages of a partnership business.
1) Responsibility is shared
2) Time, costs and commitments are shared
3) Usually small and accounts are kept private
what are 3 disadvantages of limited companies?
1) This type of business is difficult to set up legally
2) Loss of individual control
3) Value of shares can go down
what is a franchiser?
The person who owns a franchise
what is franchises?
when the franchiser (person who owns the business) allows another business (the franchisee) to trade under its name and copy its business idea in a particular location.
It’s a joint venture between the two.
The amount of money it will cost to run a franchise will depend on size.
McDonalds and Pizza Hut are examples of franchises.
What are the advantages and disadvantages for the franchiser?
They earn more money for people who pay to use their name and business idea (advantage) but if the franchisee runs their business badly this will reflect on company name and damage its reputation and brand (disadvantage)
what are the advantages and disadvantages of a franchisee?
Franchises are expensive to buy and they do not have full control of their business (disadvantages) however they have the franchiser to support them who has lots of experience and financial advice also they gain an established business name meaning customers will recognise it as having a good reputation (advantages)
