Business Ownership Flashcards
(7 cards)
1
Q
Name two types of unincorporated businesses.
A
Sole trader and partnership.
2
Q
What is limited liability?
A
3
Q
What is a private limited company (Ltd)?
A
A business owned by shareholders with limited liability, whose shares are not sold to the public.
4
Q
What is a franchise?
A
A business model where a franchisee buys the rights to trade under a franchisor’s brand.
5
Q
What is a public limited company (PLC)?
A
A business whose shares can be traded on the stock exchange.
6
Q
What are the advantages of a sole trader?
A
Full control, keeps all profits, simple to set up.
7
Q
What is a not-for-profit organization?
A
A business that aims to serve society and not make profit for owners.
