Buisness Ownership Flashcards
(13 cards)
What is an entrepreneur
An entrepreneur is someone who sets up a business or businesses taking on the risk in hope of profit
What is a sole trader
Business which is fully owned by one person who has complete control over how the firm is run
What is a partnership
When two or more people coming to form a business ie they share responsibility
What is a private limited company (PLC)
A business which is incorporated and therefore is a separate legal entity from its owners
What is a public limited company
a business that is managed by directors and owned by shareholders. A public limited company can offer shares to the public.
Advantages if a sole trader
All profits are kept
Better control
Financial privacy
Low start up cost
Disadvantages of a sole trader
Lack of continuity
Long hours
Lack of expertise
Lack of capital
Unlimited liability
Advantages of partnerships
Financial privacy
Low start up costs
Raising capital is easier
Shared work load
Specialisation
Disadvantages of partnership
Conflict between partners
Lack of capital
Lack of continuity
Loss of autonomy
Unlimited liability
Private limited company advantage
Continuity
Rasinfg capital is easier
Limited liability
Control
Private limited company disadvantage
Sharing of profits
Lack of privacy
Set up costs
Limit of capital
Public limited company adv
Limited liability
Raising capital
Continuity
Specialisation
Public limited company dis
Set up costs
Divorce of ownership
Less privacy
Threat of takeover
