- Easy to set up
- little finance required
- 100% Control
- 100% Profits
- Financial information is private
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Disadvantages of a sole trader?
- Unlimited liability (responsible for all the debt)
- Illness (business stops operation)
- Shortage of capital
- Hours of work
- Skill shortage
- Continuity (death)
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What are partnerships?
A partnership is a business owned by 2 or more people.
4 of 12
Advantages of partnerships?
- Capital (easier to set up with people)
- Easy to set up
- More skills in the business
- Financial information is private
5 of 12
Disadvantages of partnerships?
- Profit is shared
- Unlimited liability
- Shortage of capital
- Slower decision - making
- Continuity
6 of 12
What is a plc?
A plc is a business owned by shareholders and its shares being the London stock exchange. (aka the general public)
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Advantages of a plc?
- Ability to raise large amounts of capital
- Easier to borrow money
-Limited liability for shareholders
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Disadvantages of a plc?
- Possibility of takeover from other businesses
- Cost of setting up and operating
- Problems of size
- Financial information available to the public.
9 of 12
What is a Ltd?
An ltd is a Private limited company whose owned by shareholders though it's shares are restricted from the public.
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Advantages of Ltd?
- Limited liability
- Can raise money more easily
- Control over share sale
- Continuity
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Disadvantages of Ltd?
- Financial information is available to the public
- Administration (complexity)
- Sales of shares is restricted
- Dividends (amounts of money paid to shareholders)
12 of 12
Other cards in this set
Card 2
Front
Advantages of a sole trader?
Back
- Easy to set up
- little finance required
- 100% Control
- 100% Profits
- Financial information is private
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