4201173
Description
Flashcards by Alex Collins, updated more than 1 year ago
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Created by Alex Collins
over 8 years ago
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| Question | Answer |
| Sole Trader | Someone who owns their own business. They are the 'sole' owner. However they can have an unlimited number of employees. |
| Sole Trader: Advantages | • You are your own boss. • Make your own decisions. • Can make decisions quickly. • Easy to set up. • Keep all of the profits. |
| Sole Trader: Disadvantages | • Unlimited liability. • May lack finances. • Heavy workload. • May not have all of the skills required. • Difficult to take a holiday. |
| Partnership | A business with two or more owners. Like a sole trader, there can be any number of employees. There can be the presence of a 'silent partner', who puts money into the business and allows the other partner/partners to control it. |
| Partnership: Advantages | • Shared workload. • More sources of finance than that of a sole trader. • Skills can be shared amongst the partners. • Holidays can be taken with fewer worries. |
| Partnership: Disadvantages | • There could be disagreements between partners. • Unlimited liability. • Liable for the actions of the other partners. |
| Private Limited Company | A privately held small business. The number of potential shareholders is limited to 50, and the they are restricted from publicly trading shares. |
| Private Limited Company: Advantages | • Limited liability. • Better status in eyes of some customers. • Continues after the death of the founders. • Investors can be brought-in. |
| Private Limited Company: Disadvantages | • Have to register with Companies House. • Have to disclose information on sales and profits. • Have to have accounts independently checked. • If there are other investors, the original founder is not in full control of the business. |
| Franchisor | Someone who provides one or more people with a license to operate under their trade name. |
| Franchisee | Someone who runs a franchise and operates under the trade name of a previously developed brand. |
| Franchise | A chain or outlet of a reputable business run by an independent company, individual or group. |
| Motivational Theory | • Frederick Taylor • Elton Mayo • Abraham Maslow • Frederick Herzberg |
| Frederick Taylor Piece-Rate Pay Scientific Management | • Said that employers should perform a time and motion study. • Identify the most efficient ones. • Break the tasks down into small manageable mini tasks. • Get the relevant equipment to help with tasks. |
| Elton Mayo The Hawthorne Effect | • Originally wanted to see if productivity increases if more light is present. |
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