Lesson 2: UK Economy
- Created by: SammieLou_x
- Created on: 25-02-13 17:29
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- 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.
- Private limited companies
- Public Sector
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