Business ownership Flashcards
(11 cards)
What is a sole trader in a business
An exclusive business owner that gets all profits and liabilities
What are the advantages of being a sole trader
You get to keep all the profits and have full control over decision making
What is a major drawback of stole traders
They have unlimited liability for business debts
What is a partnership in business ownership
A business ran by 2-20 individuals sharing risk and profit
What is a key benifit of a partnership
Shares the costs the risks responsibilities and workload
What is a disadvantage of a partnership
Have to share all profits
What characterises a private limited company
Sells shares privately and has limited liability for debts
How does a private limited company raise funds
By selling their shares privately to investors
What distinguishes a public limited company
Offers are sent to the public increasing finance
How does limited liability benifit business owners
Protects the owners personal assets from business debts
