Business Ownership Flashcards
(9 cards)
What’s is the main difference between a plc and an ltd?
An ltd’s owners are the shareholders with their family and friends
Whereas in a plc’s is the general public on the stock market
How many owners are there in
a) a sole trader?
b) a partnership?
c) a private limited company?
d) a public limited company?
a) 1
b) 2-20
c) a few
d) lots
What type of liability do
a) sole traders and partnerships have?
b) ltd’s and plc’s have?
a) unlimited
b) limited
Define limited liability
When only the money invested into the business can be lost if the business fails rather than losing everything until the debt is payed off
Name some benefits to being a sole trader
- complete control
- keep all profits
- easy and cheap to set up
- finical information is private
Name so disadvantages of a sole trader
- unlimited liability
- hard to find funds
- if owners ill no one wake may be able to run the business
- long hours
- if the business owner dies then the business may cease if no one inherits it
- if the business owner wants to sell then it may be hard to find someone to buy it so will have to cease
- some owners may not have the necessary skills
- no benefit from economy of scale
Name some internal stakeholders
- employees
- sometimes shareholders
- owner
- management
Name some external stakeholders
- customers/ consumers
- supplier
- sometimes shareholders
- competition
- investors
- local businesses
- local community
- pressure groups
- trade unions
- local government
- national government
Define stakeholder
Any person or group of people who are interested in the activities of a particular business