a business that is owned by share holders, limited liability
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Share Holders
an individual that legally owns one or more shares of stock in a business
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LTD (private limited company)
shares sold to friends and family, protected by limited liability
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PLC (public limited company)
shares can be freely sold and traded to the general public,shares can be listed on a stock exchange.
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Advantages of Companies
better status/image, easier to raise capital, banks are more likely to lend, usually bigger
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Disadvantages of Companies
easy to lose control (PLC), pay dividend, not easy to set up (fill out documents)
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What is dividend?
a sum of money paid regularly (annually) by a company to its shareholders out of its profits.
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Limited Liability
partners are legally responsible for the debts only to the extent of the value of their input
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Unlimited Liability
legal obligations partners have for all business debts
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StakeHolders
individuals or organisations that are affected or affect a business
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Internal StakeHolders
employees, workers, owners.ect.
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External StakeHolders
suppliers, customers, community.etc.
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Soletrader
owned and managed by one person (your own business)(self employed)
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Advantages
quick, easy, no legal documents, keep all the profit, make your own decisions
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Disadvantages
stressful, individual may not have all the skills, likely to be smaller business, rely on own finances at the start, only individual ideas and unlimited liability
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Partnership
when two or few people pursue a business most have unlimited liability
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Advantages
easier to raise capital, variety of skills, less stress/work, more ideas
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Disadvantages
share profit, decisions take longer, disagreement of ideas
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Deed of Partnership
a legal document all partners must sign which sets out rules of partnership
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Sleeping Partners
investors who gives money at the start and get capital back (no role in the business)
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Non - profit business
(charities) a business that helps others run by trustees (must register and receive approval)
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Public Sector
all organisations run by the governemt
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Private Sector
all businesses run by non-government
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Other cards in this set
Card 2
Front
a business that is owned by share holders, limited liability
Back
Companies
Card 3
Front
an individual that legally owns one or more shares of stock in a business
Back
Card 4
Front
shares sold to friends and family, protected by limited liability
Back
Card 5
Front
shares can be freely sold and traded to the general public,shares can be listed on a stock exchange.
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