Size and features

Question 1

Medium business number of employees range

Answer 1

50-249

Question 2

Small business number of employees range

Answer 2

11-49

Question 3

Micro business number of employees

Answer 3

Less than 10

Question 4

What are two other measures apart from employees we can use to classify business size

Answer 4

-annual turnover
-total assests

Question 5

What does liability mean?

Answer 5

who is legally responislbe for something

Question 6

What is unlimited liability?

Answer 6

The owners are personally responsible for any debts the business occurs

Question 7

What is limited liability?

Answer 7

Where the business are not liable for any debts of the company

Question 8

What is one pro of unlimited liabilty?

Answer 8

-more freedom
-don’t need to file online accounts of the business
-management quality, they have alot to lose they are often encouraged to encourage risk assessments

Question 9

What is one con of unlimited liability?

Answer 9

-Owner and company are legally the same
-business debts personally paid by owners

Question 10

Pro of limited liability?

Answer 10

-Separate legal idenity from the business and owners
-If business fails the owner will only have lost the money they invested in the business
-Less risk; any legal action will be taken against the business not the owners

Question 11

Con for limited liability

Answer 11

-Subject to more regulations
-Higher cost: need to comply to company law
-Lack of confidentiality; must submit accounts into a company house