X2 Flashcards
What is a partnership business?
A partnership business is owned by two or more people.
What are the advantages of a partnership business?
- Low start-up costs.
- Shared responsibility and workload.
- Business can continue after the death of one partner.
What are the disadvantages of a partnership business?
- Possibility of disputes.
- Difficulty in finding a suitable partner.
- Divided loyalty and authority.
How many owners can a partnership business have?
A partnership can have 2 to 20 owners, with a maximum of 50 partners.
What is a private limited company?
A private limited company has one shareholder and a maximum of 50 non-employee shareholders.
What are the advantages of a private limited company?
- Easier to attract finance.
- Growth potential.
- Long life success - the company does not have to end due to death, disability, or retirement.
What are the disadvantages of a private limited company?
- Cost of formation - more expensive than a sole trader or partnership.
- Public disclosure - reporting of certain information.
- Rapid growth may lead to inefficiencies.
How many owners can a private limited company have?
A private limited company can have 1 to 50 shareholders.
What is a public company?
A public company has a minimum of one shareholder and no maximum number of shareholders.
What are the advantages of a public company?
- Greater potential for growth.
- Limited liability.
What are the disadvantages of a public company?
- Less control.
- Market pressure.
What is a government business enterprise (GBE)?
A GBE is government-owned and operated.
What are the roles of government business enterprises?
- Able to carry out government policies delivering community services and areas where private sector businesses might hesitate to invest.
- Can operate with some independence from government.
- Competing with private sector businesses creates healthy competition, benefiting consumers.
What is a social enterprise?
A social enterprise is a business that produces goods and services for the market.
What are the advantages of a social enterprise?
- Can open up new markets.
- Meeting a social need can positively affect profit and market share.
What are the disadvantages of a social enterprise?
- Difficult to focus on social and financial objectives.
- Difficulty in finance.
- Significant operating cost.
Who owns a social enterprise?
A social enterprise is privately owned.
