• Their personal assets would not be taken if the business gets into financial difficulty. • The company’s finances are separate from its owners.
2 of 14
Give 2 disadvantages of a private limited company
• Private Limited Companies must hold annual meetings. • A Limited Company is more expensive to set up than a sole trader or partnership.
3 of 14
Define public limited company
Businesses that have been registered under the Companies Act 1980 and whose shares are offered to the public, subject to conditions of limited liability
4 of 14
Give 2 advantages of a public limited company
• They can sell shares on the stock exchange. • They have better access to capital.
5 of 14
Give 2 disadvantages of a public limited company
• There are many legal formalities to starting a public limited company. • There is a possibility that the original owners can lose control of the public limited company in the issue of a dispute or violation.
6 of 14
What is a Franchise?
A business which has bought the right to use their name and business systems.
7 of 14
Give 2 advantages of a franchise
• The Franchisor usually provide training for employees. • There is a reduced risk of business failure.
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Give 2 disadvantages of a franchise
• Franchisees are required to operate their business according to the rules set out by the franchisor. • Any losses have to be paid by the franchisee.
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Define public sector
The part of the economy that is controlled by the Government.
10 of 14
Give 3 examples of organisations in the public sector
• Emergency services • Schools • Public transport
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Define multi national business
A business that is based in one country but operates in several others around the world.
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Give 3 examples of multi national businesses
• Coca Cola • Samsung • BMW
13 of 14
What is the difference between merger and takeover?
A merger is where two businesses become one whereas a takeover is where a larger business buys a smaller business
14 of 14
Other cards in this set
Card 2
Front
Give 2 advantages of a private limited company
Back
• Their personal assets would not be taken if the business gets into financial difficulty. • The company’s finances are separate from its owners.
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