Flashcards
Choosing the Right Legal Structure for the Business
Cards in this deck (11)
- 1Unincorporated BusinessNo distinction in the law between the owner and the business itself.
E.g. sole traders or partnerships. - 2Incorporated BusinessThe business and owner have separate identities in the law.
E.g. private or public limited. - 3Unlimited LiabilityA situation in which owners of a business are liable for all the debts that the business may incur.
- 4Limited LiabilityA situation in which the liability of owners of a business is limited to the fully paid-up value of the share capital.
- 5Sole TraderA business owned by one person. Can operate on their own or they may choose to employ people.
- 6PartnershipA form of business in which 2 or more people operate for a common goal of making a profit.
- 7Private Limited CompanyA small to medium-sized business that is usually run by family or a small group of individuals who own it.
- 8Public Limited CompanyA business with limited liability, a share capital over £50,000 with at least 2 shareholders, 2 directors, a qualified company secretary and a wide spread of shareholders. It has plc after its name.
- 9OwnershipProviding fiance and therefore taking risks.
- 10ControlManaging the organisation and making decisions.
- 11StakeholdersAny group of individuals with an interest in the business. This includes employees, customers and the local community.
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- A Levels Business Studies Flashcards on Choosing the Right Legal Structure for the Business, created by katie.swift.ks on 15/12/2013.
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- katie.swift.ks
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