Unit 1: Setting up a Business (1)
- 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
- 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
- Why businesses exist?
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