Types of Business Flashcards
Three types of business
sole trader
partnership
company
What kind of business
a single proprietor owns the business, takes all the risk and enjoys all the rewards of the business
sole trader
What kind of business
the relation which subsists between persons carrying on business in common with a view of profit
Partnership
What kind of partnership
no separate legal identity, regulated by partnership act 189-
general partnersihp
What is described
a legal entity registered as such under the companies act 2006
Company
What kind of company states
memorandum states it is public and that it has complied with registration procedures for a company. it may offer shares and other securities for sale to the public at large
public compnay
What is described
not registered as public, not offer securities to the public at large
private compnay
All companies must have at least
one shareholder
Public companies must have at least
two directors and £12,500 in share capital paid up at registration
what is described
separate business may be limited company formed when two or more businesses take a financial stake and management is provided as agreed
joint venture
What is described
Permission given to another company to manufacture or sell a product, or to. Use brand name. Most commonly a franchise, involves an annual fee plus minimum order for goods, usually at a discount
Licenses
What is described
informal or weak contractual agreement between parties or a minority cross shareholding arrangement
Strategic alliances
What is described
can be used as the distribution channel where local knowledge and contacts are important. agreements may be restricted to marketing and product support
agents
what type of organisation is this a disadvantage of
Disagreements between venture partners over management and marketing strategy
JV
what type of organisation is this a disadvantage of
Venture partners may gain confidential info about each other which could be used competitively
JV
