Flashcards
Business type - forms of ownership
Flashcards do conjunto (18)
- 1Gary the Chimney Sweep What type of business ownership does he have?A sole trader
- 2Name three advantages of being a Sole Trader1. Can be set up easily
2. All the profits go to the owner
3. Sole trader is responsible for all the decision making - 3Name three disadvantages of being a Sole Trader1. Limited capital to start the business
2. Unlimited liability - responsible for all the debts of the business
3. A lack of multiple skills - 4What type of business ownership does this group of solicitors have?Limited Liability Partnership
- 5What type of business ownership does this group of accountants have?Partnership
- 6Name three advantages of partnership owners1. More than one person investing in business so more start-up capital
2. Skills expertise available from other partners
3. Share work around if you're ill - 7Name three disadvantages of partnership owners1. Decision making is shared which means they might take longer to make
2. Unlimited liability if not set up as an LLP
3. Profits shared according to partnership agreement upon set up - 8List the points included in a Deed of Partnership or a Partnership AgreementThe capital contributed by each partner
The ratio in which profits/losses are shared
The rate of interest to paid on capital
Salaries to be paid to partners
The role of each partner in the business
Arrangements for admission of new partners
Procedures for partners retiring or dying - 9What type of business ownership do these builders have?Private Limited Company
- 10What type of business ownership does this builders merchant have?Public Limited Company
- 11Name three advantages of Private Limited Companies (Ltd) or Public Limited Company (plc)1. Shareholders have limited liability
2. Easier to raise capital through share issue
3. Easier to raise finance from banks
4. Operate on a large scale
5. Suppliers feel more confident
6. Company name is protected by law - 12Name three disadvantages of Private Limited Companies (Ltd) or Public Limited Companies (plc)1. Set-up and running costs can be expensive
2. Decisions can be slow
3. Get too large and become ineffective
4. Employees and shareholders are distant
5. Affairs are public
6. Business controlled by Companies Acts - 13If a business wants to operate as a limited company, what legal requirements do they need to meet?Register their business with the Registrar of Companies by completing:
1. Memorandum of Association (what the company is and nature of the business)
2. Articles of Association (sets out how the business will be run internally) - 14What type of ownership does this business have?Franchise
- 15Name three advantages of a franchise1. Setting up a business with an already established success strategy
2. Training provided by the franchisor
3. Marketing and promotion provided by the franchisor - 16Name three disadvantages of a franchise1. Expensive to buy into
2. Not able to make as many decisions as a sole trader
3. Have to share a percentage of profits with the franchisor - 17What type of business is does this organisation have?Voluntary
Charitable
Not-for-profit organisation
- 18What does the term 'Not-for-profit' mean?This type of business does not have profit as an aim for their business - they only make enough to cover their costs
Informações
- Descrição
- GCSE Business (Revision) FlashCards sobre Business type - forms of ownership, criado por Sue Salih em 02-11-2014.
- Criado por
- Sue Salih
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