Business Ownership Flashcards
(13 cards)
What is a partnership?
A business owned by more than one person. Consists of 2-20 legal partners.
What is a Deed of Partnership?
A legal document signed by all partners which includes detail about there roles and responsibilities.
What is a sleeping partner?
A partner that invests capital into the business. Gets share of profit but doesn’t participate in the activities of the business.
What is a Private Limited Company(LTD)? Does it have Limited liability or unlimited liability?
A limited liability company that can sell shares to friends to raise capital. Family run business. Can only have one owner.
What is a Public Limited Company (PLC)? Does it have Limited liability or Unlimited liability?
A Limited liability company that must have a minimum of £50k of capital of shares. Sell shares to public via stock exchange. 2 or more owners.
What is unlimited Liability?
If the business goes into debt the owners are at risk of losing their personal possessions.
What is Limited liability?
If the business goes into debt personal possessions are NOT at risk. The owners only lose investment. PLC //LTD
What is a Franchise?
An already established business that sells the rights for another company to set up with the same name.
What is a Franchisor?
The person or business that is selling its name to another.
What is a Franchisee?
The person or business buying the existing businesses name.
What is a Royalty payment?
A payment that the franchisee must pay in order to use the name and logo of the established business.
What is a Not for Profit organisation?
An organisation that doesn’t operate to make a profit. E.g charity.
What is a Sole trader ?
A business owned by one person. Owner can employ other people. Legal ownership and responsibility is owner alone.
