Business Organisations

What is a sole trader?
A sole trader is a business that is owned and controlled by one person. They might specialise in a specific area, they have unlimited liability.
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What is an advantage of being a sole trader?
They are usually small and easy to set up, a small amount of capital needs to be invested into the business, cost of wages would be low as there aren't many employees and is easy to control
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What is a disadvantage of being a sole trader?
Has nobody to share responsibilities with, often work long hours, limited amount of available capital there is a risk with unlimited liability
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What is a partnership?
It is a business owned by 2 - 2o0 people and a contract called the deed of partnership is usually drawn up, there might also be a sleeping partner
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What is an advantage of being in a partnership?
There is shared responsibility and this allows for specialisation, more capital, less pressure on the individuals and you make joint decisions
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What is a disadvantage of being in a partnership?
Shared responsibility, arguments about the decisions, distribution of profits and unlimited liability
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What is a sleeping partner?
A partner who invests into the business but does not deal with the day to day running of the business
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What might be included in the deed of partnership?
Could state the type of partnership it is, how much capital has been contributed and how profits and the losses might be shared
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What is a limited company?
They are incorporated which means they have their own legal identity, the ownership is divided up into equal parts called shares, shareholders have limited liabilty
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What are the two main types of limited companies?
A private limited company (ltd) and a public limited company (plc)
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What is a franchsie?
A franchise is an agreement of which one business, called the franchisor, buys the right to sell the goods or services of another business, the franchisor, that means its allowed to use the franchisors name
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What is an advantage of being a franchisee?
You have more chance of success and their is less risk their is also help and support provided
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What are some disadvantages of being a franchisor?
Loss of some of the control over the business, can only sell the product and service to the franchise, anm error made by a franchisee can affect the franchises image and repuation
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What are some advantages of being a franchisor?
You can expand the business without having to raise the capital
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What ios the public sector?
The public sector are all the business and other organisations that are controlled by central or local government
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Other cards in this set

Card 2

Front

What is an advantage of being a sole trader?

Back

They are usually small and easy to set up, a small amount of capital needs to be invested into the business, cost of wages would be low as there aren't many employees and is easy to control

Card 3

Front

What is a disadvantage of being a sole trader?

Back

Preview of the front of card 3

Card 4

Front

What is a partnership?

Back

Preview of the front of card 4

Card 5

Front

What is an advantage of being in a partnership?

Back

Preview of the front of card 5
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