Business Ownership Flashcards
What is unlimited liability?
No legal distinctions between business and the owner.
What is limited liability?
The business and owners are legally separated
Which 2 businesses have unlimited liability?
Sole trader
Partnership
Which 2 businesses have limited liability?
Ltd
Plc
What is a sole trader?
The only owners of a business
What is a partnership?
2+ owners of a business who share knowledge and expertise
What is an LTD?
private limited company
people who share the same objectives
one or more shareholders
financial accounts must be published
What is a PLC?
public limited company
ownership is divided among many people
What is the stock market flotation?
shares are advertised to and accessible to the public
What is a franchisor?
allowing independent businesses to use your brand name
What is a franchisee?
paying to use another businesses brand name - royalties need to be paid
