Chapter 2 Flashcards
(18 cards)
Types Leisure and Tourism Provision Costs
- Free
- Subsidized
- Full commercial rates
Influences to political parties
pressure groups
trade unions
local press
national government
how are Nation Govt organizations in public form mainly financed
Taxes
Trading Income
Unlimited Liability
owners face no limit to their contribution if organization goes into debt
Limited Liability
owners can create a separate legal identity which limits exposure and liability in case of company failure.
divided into public and private companies
Sources of Finance
available to sole proprietors/partnerships
- capital contributed by owners
- ploughed-back profits
- bank loans
raise capital through
- shares (equity)
- debentures
Comes from: charges for services where applicable central government grants grants from other sources (e.g. lotteries) local government taxation local government borrowing.
AKA
Charges, grants, loans, taxes
Public-sector (owner)
Government owned
Private-sector
Non-govt owned
Council Memeber
Elected councillor
Council Officer
Paid Official
Private Limited Company
Company with restrictions governing transfer of shares
Public Limited Company
shares are freely transferable and quoted on stock market
Nationalized Industry
Industry owned and run by the govt
Dividend
The distribution of profits to shareholders
Limited Liability
Liability limited to amount of investment
Flotation
Floating a private limited company on the stock market thus becoming a public limited company
Advantages to Unlimited Liability
advantages: independence motivation personal supervision flexibility
Disadvantages to Unlimited Liability
disadvantages: unlimited liability long hours of work lack of capital expansion difficulties is case of illness
