business types Flashcards
(14 cards)
give advantages of being a sole trader
- quick and easy to set up
- no formal meetings
- all profits directly to owner
- control over how profits are used
- flexible
- complete control
give disadvantages of being a sole trader
- owner is liable for all debts and liabilities
- personal assets at risk if business fails
- limited resources = growth constraints
- high workload
- only your skill set
what is a limited company
a business that is owned by shareholders who have bought shares from the company. run by directors, separate legal identity to to its owner
give advantages of limited companies
- limited liability
- debt shared
- easier to raise money
give disadvantages to limited companies
- complex management structure
- lots of legal formalities required
- company must produce accounts which are available to the public
what does ltd stand for
limited company
what does plc stand for
personal limited company
what are memorandums
written documents recording legal details such as terms of contracts
what are articles of association
rules about running a company agreed my shareholders, directors and any other management involved
what is a register of companies
an official in charge of the office which keeps the records for limited companies
what are certificates of incorporations
a legal document that certifies and confirms that companies have registered as a separate and legal entity, distinct from its owners and shareholders
what must be signed before a partnership can begin
(must be signed by all partners)
- partnership agreement
- contract of partnership
- deed of partnership
give advantages of a partnership
- share workload and ideas
- debts spread
- financially backed by government funding
give disadvantages of a partnership
- have to share profits
- disagreements
- less control
