types of buisnesses Flashcards
has unlimited liability and is personally responsible for debts
sole trader
when a person buys the right to use the name products and services of existing business
franchise
has unlimited liability and joint responsibility for debts
partnership
established reputation and products or services and franchiser provides training
franchise
depends if it was set up as a sole trader or company
franchise
franchisor control decisions and operations and have to pay ongoing fees to the franchiser
franchise
limited liabilty members are limited to the value of there investments for business debts
cooperative
simple and inexpensive to set up and share of losses
partnership
business which has at least 5 members
cooperative
limited liability can raise lots of money can change shareholders easily
company
business owned by 1 person
sole trader
business owned by 2 to 20 partners
partnership
business that has separate legal entity from its shareholders a public company has 1 shareholder
company
limited liability and shareholders are limited to the value of their shares
company
inexpensive. equal voting and no minimum age limit with limited liability
cooperative
