A-level business

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what are the advantages of being an LTD?
limited liability
don't have to show all of its accounts
more flexible than PLCs
1 of 12
what are the disadvantages of being an LTD
harder to raise finance if expansion is needed
high upfront fees as well as the cost of paperwork
harder to sell shares as there less attractive
2 of 12
what are the advantages of PLCs
easier to raise capital
limited liability
suppliers are more willing to offer credit to plcs
3 of 12
what are the disadvantages of PLCs?
accounts published-more than an LTD
anyone can take over the business
pressure from investors for short term goals
4 of 12
what are the advantages of sole traders?
easiest set up
keep all the profit
become their own boss
5 of 12
what are the disadvantages of sole traders
limited skill pool
unlimited liability
harder to raise finance
6 of 12
what is the abbreviation for all the external factors that affect a business?
PESTLE
political,economic,social,tech,legal,and enviroment
7 of 12
give at least two examples for each pestle factor
political -competition policy and industry regulation
economic-interest rates and consumer spending and income
social-demographic changes and impact of pressure groups also changing styles and lifestyles
tech-disruptive tech and new production processes
8 of 12
what are the factors that influence shareholders/investors?
wanting to receive dividends
if they agree with a company values and aims
9 of 12
what factors influence the value of shares?
business performance
economic performance
news articles
10 of 12
what is market capitalization
a way of valuing a business
=number of shares x price of 1 share
11 of 12
what is ordinary share capital
capital raised through selling shares
12 of 12

Other cards in this set

Card 2

Front

what are the disadvantages of being an LTD

Back

harder to raise finance if expansion is needed
high upfront fees as well as the cost of paperwork
harder to sell shares as there less attractive

Card 3

Front

what are the advantages of PLCs

Back

Preview of the front of card 3

Card 4

Front

what are the disadvantages of PLCs?

Back

Preview of the front of card 4

Card 5

Front

what are the advantages of sole traders?

Back

Preview of the front of card 5
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