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  • Created by: kc
  • Created on: 13-10-17 08:29
Explanation of Unlimited Liability
Unlimited liability is when the owner is liable for all the debts of the business. Personal assets of the owner can be seized and used as payment to cover the debts of the owner. Sole trader or a partnership.
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Characteristics of an Unincorporated Business
Unincorporated businesses have unlimited liability and there is no law that separates the business and the owner. Normally sole traders and partnerships.
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Explanation of Limited Liability
Limited liability is when the owner or owners are only liable for the initial amount they invested into the business if they become in debt. They can't have their personal assets used as payment. Private limited companies and public limited companies
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Characteristics of an Incorporated Business
Limited liability. There is a law that hold the owners separate only liable for the debt that they invested. Public limited companies and private limited companies.
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Main features of a Sole Trader
Receive 100% of the profit and 100% of the decisions.
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Advantages of a Sole Trader
!00% of profit. 100% of the decisions.
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Disadvantages of a Sole Trader
Unlimited liability. No advise.
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Explanation of Dividends
Dividends can be paid to the shareholders annually if the business chooses to pay them dividends but they don't have to be paid.
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Main features of a (Private) Limited Company
Private limited companies are normally made of 2+ people and majority of the businesses that are private limited companies are ran by families.
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Advantages of a (Private) Limited Company
Limited liability. Can raise share capital.
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Disadvantages of a (Private) Limited Company
Profit has to be shared between owners and shareholders.
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Characteristics of a PLC
Public limited companies are that share capital can be raised because they're floated on the stock exchange.
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Explanation of Public Sector Organisations
Public sector organisations are businesses that are in the public sector for example the NHS and the police. They provide a service to the public but are a business.Explanation of Not-for-profit Organisations
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Explanation of Not-for-profit Organisations
Not profit organisation are businesses that are mainly charities and they
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Other cards in this set

Card 2

Front

Characteristics of an Unincorporated Business

Back

Unincorporated businesses have unlimited liability and there is no law that separates the business and the owner. Normally sole traders and partnerships.

Card 3

Front

Explanation of Limited Liability

Back

Preview of the front of card 3

Card 4

Front

Characteristics of an Incorporated Business

Back

Preview of the front of card 4

Card 5

Front

Main features of a Sole Trader

Back

Preview of the front of card 5
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