What is Business?
- Created by: Jodie_charnock
- Created on: 17-01-18 11:28
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- Unit 1- What is Business?
- Souces of Finance
- Short Term
- Debt Factoring
- Disadvantages
- Potential bad debt liability
- Advantages
- Improve cash flow
- Shorten cash cycle
- Disadvantages
- Overdraft
- Advantages
- Timely Payment
- Less Paperwork
- Flexability
- Disadvantages
- Higher interest rates
- Risk of seizing
- Advantages
- Trade Credit
- Disadvantages
- Only available to few
- Advantages
- Easy and automatic effect
- Reduces capital requirement
- Disadvantages
- Debt Factoring
- Long Term
- Share Capital
- Advantages
- Liquidity
- Value of shares
- Money quickly
- Disadvantages
- Higher cost
- Ownership dilusion
- Advantages
- Venture Capitalist
- Disadvantages
- Loss of control
- Minority ownership status
- Advantages
- Connections
- Business expertise
- Disadvantages
- Bank Loan
- Advantages
- Multiple loan options
- Convenient and accessible
- Disadvantages
- Risk or losing colateral
- Lengthy application process
- Advantages
- Share Capital
- Short Term
- Business Ownership
- Sole Trader
- Advantages
- Easy to set up
- Personal incentive
- Disadvantages
- Limited access to capital
- Unlimited liability
- Advantages
- Partnership
- Advantages
- Greater access to capital
- Shared responsibility
- Disadvantages
- Potential for conflict
- Unlimited liability
- Advantages
- Private Limited Company (LTD)
- Disadvantages
- Profit gets shared out
- Difficult to sell shares
- Advantages
- Limited liability
- More capital can be raised
- Disadvantages
- Public Limited Company (PLC)
- Advantages
- Easy to raise funds
- Dominate the market
- Disadvantages
- Setting up costs are high
- Lose personal touch
- Advantages
- Co-Operative
- Advantages
- Limited liability
- Easy imformation
- Disadvantages
- Lack of interest
- Lack of secrecy
- Advantages
- Franchise
- Disadvantages
- Less control/ personal touch
- Advantages
- Less risk
- Established brand
- Disadvantages
- Sole Trader
- Stakeholders
- Communities
- Customers
- Suppliers
- Government
- Owners
- Pressure groups
- Workers
- Souces of Finance
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