Business Legal Structure

Created by: CpLucy
Created on: 30-11-16 11:47

What is a private limited company?

A private limited company is a company which is limited in selling shares and cannot sell shares the the general public

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What is a Co-operative?

A cooperative is when a group of people act together to achieve common needs and aspirations of its members, sharing ownership and having a democratic leadership style.

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What is a sole trader?

A sole trader is someone who independently sets up their own business and runs it

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What is a partnership?

A partnership is a business which is owned by between 2-20 members. They have to agree to the Deed of Partnership

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What is a Franchise?

A franchise is when a franchisor sells an existing business idea to a franchisee

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Explain the advantages and disadvantages of a private limited company

Ad: Limited liability and continuity DisAd: cannot sell shares to the general public ( restricte capital ) and public disclousure of business information

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Explain the advantages and disadvantages of a public limited compay

Ad: Flexible capital as they can sell shares to the general public and limited liability. DisAd: Can lose control to shareholders and can grow significantly that mangement is hard to handle and becomes inefficient

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Explain the advantages and disadvantages of a sole trader

Ad: Full control and fast decision making process DisAd: No continuity and unlimited liability

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Explain the advantages and disadvantages of a partnership

Ad: flexible capital as all partners can invest and specialisation as they can all specialise in certain areas DisAd: Long decision making process and unlimited liability

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Explain the advantages and disadvantages of a franchise

Ad: existing business idea so no risks and loyal customer base DisAd: dont have full control and if one franchise gets a bad review the whole franchise gets a bad reputation which affects responsibility

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Explain the advantages and disadvantages of a co-operative

Ad: limited liability and easy to set up DisAd: ineffiecient management and excessive goverment influence

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Other cards in this set

Card 2

Front

What is a Co-operative?

Back

A cooperative is when a group of people act together to achieve common needs and aspirations of its members, sharing ownership and having a democratic leadership style.

Card 3

Front

What is a sole trader?

Back

Card 4

Front

What is a partnership?

Back

Card 5

Front

What is a Franchise?

Back

View more cards

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Business Legal Structure