Type of Business Flashcards
What type of Business is the most common?
Sole Traider
What are the four types of business that you have studied?
Sole Traider, Paternship, Private Limited, Public Limited
What types of business do you only need to show basic record
Sole Traider & Partnership
What business is set up by teling the tax office and thats it?
Sole Traider
How many people can be in a partnership?
2-20
What are the advantages of a Sole Traider?
- All profit
- Easy set up
- Flexible
- Inexpensive
- Close relationship with customers
What are a Sole Traider and Partneship, unincorporated or incorporated?
Unicorporated
What does incorporated mean?
Gives the business its own entity.
What are the disadvatages of a Sole Traider?
- Hard ro raise revenue
- Owner is the Business, so if illl business will suffer
- Risks, every decision is there’s.
- Unlimited Liability
What does Limited mean?
Limited means the business is a different entity from the owner so the owner can’t be sued for something the business does.
What are advantages of a Partnership?
- more skills
- more money
- less risk
- easy to set up
What type of business need alot of paperwork to be set up?
Ltd and PLC
What are the disadvantages of a Partnership?
- responsible for decisons made by other partner
- unlimited liability
- profits shared
- 20 people maximises the size of business
- Partnership ends on death or retirement
How are the shares sold in a Ltd?
Privately
What business must show their profit details?
Ltd & PLC
