Lesson 2: UK Economy

HideShow resource information
View mindmap
  • UK Economy
    • Public Sector
      • Owned, financed and controlled by government and local authorities.
      • Purpose is to provide affordable/free services that benefit the community.
      • encourages and promotes equal opportunity.
    • Private Sector
      • supply's good and services to those with the ability to pay.
      • Organised by private individuals operating on their own or in groups,
      • Purpose is to create a profit.
    • Sole trader
      • Business entity owned by one person
      • Business and owner are one and the same in the eyes of the law.
      • The owner is personally responsible for all debts the business has and therefore his private wealth is at stake if the business becomes insolvent.
    • Partnerships
      • Business entity owned by two or more people.
      • Personally liable for any action or in action of the business (one and the same)
      • The owners are personally responsible for any debt the business has but can opt to only be liable to the extent he invested.
    • Limited companies
      • Private limited  companies
        • must end its name with limited or Ltd.
        • Cannot offer its shares to the public.
        • Share capital it can raise is less that £50,000
      • Public limited companies
        • must end its name as such or Plc. and must formally register.
        • Is legally required to have authorised share captial of atleast £50,000
        • Can offer it share to the general public.
      • business entity owned by shareholders.
      • the business is seprate from its owners and in the eyes of the law it is a 'living person'
      • Shareholders are protected if the business becomes insolvent and can only lose the amount they invested.


No comments have yet been made

Similar Accounting resources:

See all Accounting resources »