Mr Slattery Flashcards
What is a Sole Proprietor
1 owner
Submits his/her tax returns
Pays income Tax
Responsible for all the debts (unlimited liability)
What is a Partnership?
1-100 other people (at least 2)
Form partnerships because of different skills
Have unlimited liability
Take on a greater workload
What is a deed of partnership?
Lays out the rules for running a partnership
What is a Sleeping Partner?
Someone who invests money but takes no part in day to day running
What is a Private limited company?
A business owned by its shareholders who have bought shares from the company
Run by directors
Has a separate legal identity to its owners
LTD after its name
What are the 4 steps to becoming a company?
Register with “Companies house”
Fill in “Memorandum of Association”
Fill in “Articles of Association”
Send off for “Certificate of incorporation”
What is a Public limited company?
PLC after its name
Shareholders are members of general public
raise large amounts of capital
What is a Franchise?
Paying a fee to trade under another business’ name
What is the Public sector?
A service provided by the government
What is the private sector?
A service provided by a private business
What is privatisation?
When public companies are sold by the government to businesses in the private sector
What is a mission statement?
Overall Purpose of the business
What is an aim?
What you are trying to achieve over time
What is an objective?
More specific and short term
