Features of A Sports & Active Leisure Business Flashcards
Define unlimited liability
Where a person has no limit to the amount of debt that they’re responsible for
What’s a business plan
A document that outlines the objectives and goals for a business
What are the three types of businesses
Private, public, voluntary
Who owns privately owned businesses
An individual or a group of people
What are the various ways a privately owned business can be set up
Sole trader,
partnership,
private limited companies,
public limited companies,
Co-operatives
What is a sole trader
When a person trades as an individual
They’ll run the business on their own and have unlimited liability
What does HMRC stand for
HM revenue & customs
Explain partnerships in privately owned businesses
This business arrangement is when two or more people wish to come together to form a business
Responsibilities are shared and they’ll have unlimited liability
Define limited liability
Where if a company gets into debt an individual shareholder is only responsible for the amount of debt that matches their investment
Explain private limited companies
Generally smaller businesses
organised with shareholders who invest money to buy a share of the company and have limited liability
Shares aren’t for sole in the stock market
What shows that a company’s status is limited
‘Ltd’
Explain public limited companies (PLCs)
Generally larger companies
Shares of the business are offered for sale on the stock market
Explain co-operatives
A co-operative is where a business is owned and run by its members
Define public bodies
Organisations funded by the government
Explain the voluntary sector
Charitable trust funds created to promote areas such as public health, education and relief from poverty
