Unit 1: Setting up a Business (1)

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  • Created by: jj_123
  • Created on: 01-05-15 09:07
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  • Unit 1: Setting Up A Business
    • Why businesses exist?
      • To be own boss
      • Work from home
      • To pursue an interest or hobby.
      • Escape an uninteresting job
    • A business is an organisation that is set up to provide goods or services to customers.
    • Social Enterprise
      • Main aim is to use the profit that they make to benefit others.
    • Sole Traders
      • The most common form.
      • The responsibility lies with the individual.
      • Examples: Plumbers, newsagents and hairdressers.
      • Advantages: Easy to set up, your own boss, owner has complete control of the business.
      • Disadvantages: Unlimited liability, work long hours, not many holidays, decisions all made by owner.
      • Unlimited Liability: The owners are responsible for all business debts.
      • Unincoporated
        • Partnerships
          • Two or more people (max 20)
          • Partners have equal say in decisions and profits.
          • Examples: Accountancy, Doctors and Solicitors.
          • Advantages: More capital put into business, expertise of number people. more people to share the work.
          • Disadvantages: Each partner legally responsible for other partners, unlimited liability, not the only boss.
    • Partnerships
      • Two or more people (max 20)
      • Partners have equal say in decisions and profits.
      • Examples: Accountancy, Doctors and Solicitors.
      • Advantages: More capital put into business, expertise of number people. more people to share the work.
      • Disadvantages: Each partner legally responsible for other partners, unlimited liability, not the only boss.
    • Private Limited Companies
      • Limited Liability: The owner only risks loosing the money they invest in the business.
      • Shareholders own them.
        • The more shares you own, the more control you get.
        • Shares can only be sold if all shareholders agree
      • Advantage: Limited Liability
      • Disadvantage: More expensive to set up because of paperwork, you have to publish accounts every year.
      • Incoporated

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