Business Ownership Flashcards Preview

Business📊 > Business Ownership > Flashcards

Flashcards in Business Ownership Deck (12):
1

What is a private company

Are individuals or groups of individuals who set up their own company. There goal is to make profit

2

What are public sector companies

Are state owned. There goal is to provide jobs and services for other people

3

What is a sole trader

Most common type of private business eg. Hairdresser and butcher.

4

What is unlimited liability

When all the risk is on one individual and they are personally responsible for all debts

5

Franchise

Is a business that already exists

6

How does a franchise work

The owner sells the licence to an individual

7

Franchiser

Owns the licence

8

Franchisee

Pays to use it

9

Limited liability

Usually associated with franchise, it means there is a less risk as it can't be personal liability

10

Private ltd companies

Has ltd after its name. It is owned by anyone who buys shares in the company. Shareholders own the business

11

Collateral security

Is something of value that the bank will take if you can't pay pack your loan.

12

What certificate is giving by CRO that makes a company a seperate legal company

Certificate of incorporation