General (End Of Year D1) Flashcards
(31 cards)
List features of a soletrader
- 1 owner owns and controls all
- unlimited liability
- keeps all profits
- simple, low set up costs
- limited finance access
- no legal distinction, owner and business are the same
Features of soletraders
-1 owner controls all
- unlimited liability
- keeps all profits
- low cost setup, simple
- limited finance access
- no legal distinction (owner and business are the same)
Features of Partnerships
- shared ownership and decision making
- unlimited liability
- shared profits
- more specialised roles
- can raise more capital
Features of Privately held company’s
- owned by private shareholders, no on stock exchange
- shareholders have limited liability
- profits shared as dividends
- more access to finance than soletraders
- more complex setup-legal requirements
Features of Publicly held companies
- raise capital through selling shares to public
- shareholders have limited liability
- strict legal requirements
- must publish financial statements publicly
- Grow and expand more easily
Limited liability
Means the owners (shareholders) of a business are legally responsible only for the amount they’ve invested in the business - personal assets like cars or house are protected if they go into debt
Unlimited liability
Means owners (shareholders) of business are responsible for all debts, even if it means using personal assets to pay off business liabilities
Private sector
Included business’ owned and controlled by individuals or orivate organisations, instead of the government. Typically main aim is to make profit
Public sector
Includes organisations owned, financed and operated by government to provid essential services to the public
For profit social enterprise
Business that aims to make profit whilst achieving social objectives. Reinvests some into business/community
Non profit social enterprise
Operates like a business but doesn’t aim to make a profit for owners/shareholders. Funds reinvested to support enivormental or social cause
Soletrader
Business owned and operated by one person
Cooperatives
A type of For profit social enterprise owned and controlled by a group of individuals, who come together to meet shared economics social or other needs
List features of cooperatives
- shared profits
- owned by members
- focus on reinvesting into their community
Partnerships
Business owned by 2 or more people
Globalisation
The increasing interconnectedness and integration of economics, cultures etc
Primary sector
Involves extracting natural resources from the Earth like mining, fishing or farming.
Secondary sector
Involved manufacturing/processing raw materials into finished or semi finished goods like factories or construction
Tertiary sector
Provide services instead of goods like healthcare, education
Quaternary sector
Involves high level knowledge based services such as R and D or IT
Goods
Physical, tangible products that can be touched or stored like cars, phones
Services
Intangible products such as experiences or actions like transport
Need
Basic requirements for survival like food, water, shelter etc
Wants
Desires that go beyond basic needs and improve quality of life
