What is the difference between a private and a public company. Flashcards
What is a company
A company is a legal organisation formed by a group of individuals to engage in and operate a business commercial or industrial enterprise.
What are pros and cons of a sole trader
Pro - Independency. Keep all profit
Con - Carrying finical burden, unlimited liability
What is the difference between franchisor, franchisee and franchise
A franchisor sells the right to open stores and sell products or services using its brand. A franchisee is a person who buys the rights to the business. When the business is branched its a franchise
Legal Structure
Sole trader
Partnership
Company
What are pros and cons of a partnership
Pro - Extra pair of hands, reduce in fincial burden
Con - Spilt in profit, conflict
What is the difference between private and public company
A private company shares may not be offered to the public for sale whereas a public company where the shares are offered for public sale
Pro and con about public company
Pro - Raise alot of money fast , growth and expansion opportunities
Con - Split in profit, Ownership and control issues
Pro and con about a franchisee
Pro- Finical Assistance, Reduce risk
Con- pay some percentage of the monthly gross back to the franchisor, reducing your profit potential. Limited Creativity/Flexibility
What is public limited
A PLC designates a company that has offered shares of stock to the general public. The buyers of those shares have limited liability. Meaning, they cannot be held responsible for any business losses in excess of the amount they paid for the shares.
What is limited liability
the condition by which shareholders are legally responsible for the debts of a company only to the extent of the nominal value of their shares.
Wage vs salary
Wages is the money a employer pays for the hours a worker has worked each week Whereas A salary, typically defines a fixed amount your employer pays you, not necessarily for specific hours worked but for completing the duties of your job.
Bankruptcy
When a company or a person is unable to pay his or hers debts
Difference between general and limited partnership
General partners are actively involved in the management of the partnership and can make decisions on the company’s behalf. Limited Partnerships are formed when a partner is an investor in a business but is not involved in day-to-day operations. The general partner is responsible for the management of the partnership and the limited partner is generally an investor only.
What are the 3 components of franchising
Widespread demand.
Simple and effective system.
Vision and plan
Product distribution franchising
product distribution franchises simply sell the products of the franchisor in their area of operation
