sole trader Flashcards
(20 cards)
Expensive to set up and operate. complex reporting requirements
company (disadvantages)
A business which has a separate legal entity from its shareholders a public company that has a minimum of 1 shareholder a proprietary company has 1-50
company
simplest and easiest to establish onwer has control over all decisions owner keeps all of profit
sole trader (advantages)
Simple and inexpensive to set up partners bring more money and skills shares of losses
partnership (advantages)
cooperative (disadvantages)
Controls decisions and operations paying ongoing fees profit must be shared
franchise (disadvantages)
Established reputation, products or service and store layout advertising and market support
franchise (advantages)
limited liability can raise lots of money through shareholders unlimited life charge in shareholders doesn’t crease businesses run board of director’s not the shareholders
company (advantages)
inexpensive to register. Equal voting rights. limited liability. no minimum age limit of members
cooperative (advantages)
(Limited liability) shareholders are limited to the value of their shares for any business debts. no personal assets can be sold
company (liability)
a business owned and operated by 1 person
sole trader
(Limited liability) members are limited to the value of their investment for businesses debts
cooperative (liability)
Depends on if the franchise is set up as a sole trader partnership or company
franchise (liability)
A business or person buys the right to use the name products and services on an existing business
franchise
limited liability. owner suffers all losses it is difficult to take holidays or leave
sole trader (disadvantages)
(Unlimited liability) the partners are jointly responsible for business debts their personal assets may need to be sold to meet outstanding business debts
partnership (liability)
A business which has at least five members with shared management and equal voting rights it’s a separate legal entity
cooperative
(Unlimited liability) the owner is personally responsible for business debts. their personal assets may need to be sold to meet outstanding business debts
sole trader (liability)
a business owned and operated by 2 to 20 partners
partners
unlimited liability profits must be shared disputes between partners. creases if a partner dies leaves or retires
partnership (disadvantages)
