Types of Businesses Flashcards
1
Q
sole trader
A
ran by just one person
2
Q
partnership
A
owned by between 2-20 partners
3
Q
Private limited company (LTD)
A
owned by shareholders
shares not public for anyone to buy
4
Q
public limited company (PLC)
A
owned by shareholders
5
Q
benefits of a sole trader
A
- easy to set up
- be your own boss
- you decide what happens with the profit
6
Q
disadvantages of being a sole trader
A
- unlimited liability
- banks can be hesitant to give out loans
- lots of responsibility
- can’t run if the owner is away
7
Q
benefits of being a partnership
A
- more owners means more ideas/ expertise
- more people to share the work
8
Q
disadvantages of being a partnership
A
- unlimited liability
- owners could disagree
- profits shared between all partners
