1) owned and controlled by one person 2) may not require a lot of money to set up 3) has unlimited liability
2 of 18
define: unlimited liability
1) responsible for all the debts 2) debts have to be paid even if the business doesnt have money
3 of 18
2 advantages of being a soletrader
1) make all the decision making by yourself 2) owner keeps all the profit
4 of 18
2 disadvantages of being a sole
1) unlimited liability 2) holidays may be difficult to take
5 of 18
3 facts about partnerships
1) run by 2 or more people 2) unlimited liablity 3) money is provided by the partners
6 of 18
Define: a sleeping partner
1) someone that has put money into the business but is not an active part of the day to day runnings of the firm
7 of 18
define: a deed of partnership
1) a legal document that states the rules of a business
8 of 18
Advantages of a partnership
1) decision making can be shared 2) more people put money into the business
9 of 18
disadvantages of a partnership
1) decision making can cause quarrels between partners 2) unlimited liability
10 of 18
3 facts on a LTD (private limited company)
1) 2 or more shareholders 2) shares are sold to family and friends 3) share holders have limited liability 4) Usually small
11 of 18
Define: Limited Liability
1) shareholders only lose the money they have put in 2) do not have to pay of debts using their own money
12 of 18
Define Dividend:
1) profit given to every shareholder
13 of 18
2 advantages of an LTD
1) can get money by selling shares to family and friends 2) share holders have limited liability
14 of 18
2 disadvantages of an LTD
1) accounts are not private 2) have to share profits by paying dividends
15 of 18
3 facts on a PLC (publiclimited company)
1) share holders have limited liability 2) share holders vote for a board of directors 3) company must have to words public liability or "PLC" in it's name 4) Usually large
16 of 18
2 advantages of a PLC
1) can get money by selling shares to public 2) share holders have limited liability
17 of 18
2 disadvantages of a PLC
1) accounts are not private 2) have to share profits by paying dividends
18 of 18
Other cards in this set
Card 2
Front
3 facts about soletraders
Back
1) owned and controlled by one person 2) may not require a lot of money to set up 3) has unlimited liability
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