types of businesses Flashcards
what is the private and public sector?
businesses in the private sector are run by individuals a privately.
businesses in the public sector are run by the local or central govenement and sell shares on the stock exchange publicy.
what is a sole trader?
a sole trader is in the private sector, and refers to a business set up by an individual who makes all decision and is entitled to all the profit.
advantages of a sole trader?
make all business decisions
and are entitled to all profit
disadvantages of a sole trader?
“jack of all trades” have to perform well in all operations
unlimited liability.
what is a partnership?
it is in the private sector, and a partnership is when min of two and max 20 people run a business. such as doctors and dentists and lawyers.
advantages of a partnership?
two sets of skills and expertess
more start up capital
disadvantages of a partnership?
arguments could cause problems
no deed of partnership might allow for problems to occur
unlimited liability
what is a limited company partnership
same as a partnership accept they have limited liability meaning the business is a separate entity to the owners. also they have to upload their accounts on companies house.
advantages of limited company partnership?
limited liability
disadvantages of limited company partnership?
accounts of companies house for competitors to see.
what is a private and public limited company?
private = (ltd) : sell their shares through private negotiation. public = (Plc) : sells share on the stock exchange
advantages and disadvantages of a company?
large capital
limited liability
expensive start up
more complex than a sole trader
public sector businesses?
local gov = street lighting
central gov = welfare state
what is a third sector organisation?
includes charities, community and faith groups, and their main desire is to achieve goals and raise money rather than on maximising profit.
