Section 4 Flashcards
What are the 5 types of architecture practices?
Sole practice Partnership practice Limited liability partnership Limited liability company Public limited liability company
What is a sole practice?
Most common form of practice, a sole practice is one that is ran by an individual
2 Advantage of a sole practice?
- Full control as self employed
2. Claim 100% of profits
2 disadvantages of sole practice?
- Total responsibility
- exposed to becoming broke
What is a partnership practice?
A Practice in which two or more people run it agreed in a Deed under the partnership act 1890
2 advantages of partnership practice?
- Generally more efficient- separated work load
2. Not as high responsibility
One disadvantage of the partnership practice?
Each partnership member is legally responsible for other partners obligations ( not legal separate entities)
What is a limited liability partnership?
Similar to a partnership practice except each member is a separate legal entity. Governed by Llp Act 2000
2 advantages of Llp?
- each member is only liable for their own obligations
- limited liability and responsibility
2 disadvantages for Llp?
- Profits are split/ divided between partnership
2. Treated as a company in terms of TAX
What is a Limited liability company (Ltd)?
Similar to a Llp however it is a company owned by multiple shares rather than a partnership
One advantage and one disadvantage of Ltd?
- Advantage: A legal entity desperate to members- so very little liability
- Disadvantage: very little control as directors must be employed
Name the 4 categories of business organisation?
- Business strategy
- Business advisors
- Business premises
- Employment
How would a business approach a new strategy?
- Enforce a system of assessment evaluation and analysis of current situation.
- SWOT analysis-to highlight weakness
- FOWARD THINKING!
What are the 3 types of business advisors required?
- Legal advisor
- Accountant/ financial advisor
- Insurance Broker
