types of organisations Flashcards
1
Q
private limited company (ltd)
A
owned: shareholders
controlled: director or manager in charge of specific area
financed: share capital; friends and family
2
Q
public limited company (plc)
A
owned: shareholders
controlled: board of directors
financed: share capital; stock market
3
Q
charity
A
owned: board of trustees
controlled: manager of a shop
financed: donations
4
Q
publicly funded
A
owned: government offices
controlled: government minister or local councillors
financed: tax revenue
5
Q
LTD pros
A
- has a separate legal identity
- raise more capital than sole trader
- shareholders have limited liability
- their annual accounts sent to Registrar of Companies but not in public domain
6
Q
LTD cons
A
- profits have to be shared with shareholders
- consent needed before shares sold
- expansion limited to the funds of friends and family
- have to pay auditors to look at the firm’s books
7
Q
PLC pros
A
- raise very large sums of money from the large number of shareholders
- shares are quoted on the stock exchange
- business can undertake riskier projects with higher returns
- business is run by a board of directors
8
Q
PLC cons
A
- shareholders can freely sell their shares
- firm may be subject to takeover
- shares can fall in value
- annual accounts must be published so costs money and public scrutiny
- profits have to be shared
9
Q
charity pros
A
- attract good employees
- are exempt from paying some taxes
- lower wage costs as some staff are volunteers
10
Q
charity cons
A
- high staff turnover
- lesser marketing budgets
11
Q
government or publicly funded pros
A
- social objectives so good reputation
12
Q
government or publicly funded cons
A
- slow to make decisions - bureaucratic
- cannot chase profits as an objective
