types of buisness ownership Flashcards
1
Q
what is a sole trader
A
- 1 owner
- submits his / her tax returns
- pays income tax
- responsible for all the debts
2
Q
advantages of a sole trader
A
- you make all the decisions
- you get all the credit / fulfilling
- you get to keep all the money
3
Q
disadvantages of a sole trader
A
- time consuming
- jeopardise relationships
- can impact health and well-being
4
Q
what is a partnership
A
two or more people run a business together
(pooling resources)
5
Q
advantages of a partnership
A
- different experience and ideas
- less / shared paperwork
- reduces / shared stress
6
Q
disadvantages of a partnership
A
- must agree on decisions for the business (takes time )
- arguments and disagreements
- profit is split
7
Q
deed of partnership
A
the rules of running the partnership
8
Q
advantages of a DOP ( deed of partnership)
A
- saves later disputes
- tells everyone the responsibility
- makes it clear how much was invested by whom
9
Q
LLP meaning
A
limited liability partnership
10
Q
limited liability means
A
you only loose your investment
11
Q
LTD meaning
A
private limited company (has stakeholders who are friends and family)
12
Q
continuity
A
means the business carries on every when the owners go / something happens
13
Q
LTD benefits
A
good publicity
14
Q
PLC disadvantages
A
there is a threat of takeovers and it’s expensive to stay in the stock exchange
