types of businesses (book 4) Flashcards
1
Q
what are two main business objectives?
A
profit maximisation
survival
2
Q
what are the two forms of businesses?
A
unincorporated
incorporated
3
Q
name two unincorporated businesses
A
sole trader
partnership
4
Q
name two incorporated businesses
A
private limited company (plc)
public limited company (ltd)
5
Q
what are the characteristics of unincorporated businesses?
A
with sole traders and partnerships, the owner(s) are the business and they have unlimited liability.
6
Q
what are the characteristics of incorporated businesses?
A
with plcs and ltds there are legal differences between the company and its owners, they have limited liability.
