Types Of Businesses Flashcards
Name the 4 types of businesses
Sole trader,partnership, private limited company &and public limited company.
What types of businesses have limited liability?
Public limited company and private limited companies.
Number of owners in a public limited business?
At least two.
Who finances a public limited business?
Share holders and the general public.
Advantages and disadvantages of a public limited company?
Advantages- limited liability & very easy to be financed from as anyone can buys shares.
Disadvantages-lots of legal work to set up & quite easier to someone take over the business.
Who keeps the profit in a public limited company?
The shareholders may revive small quantities of money back, however will usually be put back into the company.
Numbers of owners in a private limited Company?
2-50.
Who controls and private and public limited company?
The board of directors.
Who finances a private limited company?
Shareholders/investors.
Who keeps the profit for a public limited company?
The shareholders may get small quantities however will go to the board of directors and be put back into the company.
Who owns a partnership?
2 or more people
Who finances a partnership?
The partners.
What is the contract the partners have to sign?
Deed of partnership is a contract singed by both of the partners, working out who will keep the profit and who will do what?
Advantages and disadvantages of a partnerships:
Advantages-shared work, more sources of capital.
Disadvantages- unlimited liability, share the profit.
Who owns a sole trader business?
The sole trader.
