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25 Cards in this Set
- Front
- Back
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what does ltd stand for?
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private limited company
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ltd
shares? |
yes
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ltd
shares to who? (public or friends/family?) |
friends and family
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ltd
owned by how many people? |
1
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ltd
all of the good things: |
money by selling shares,
death and illness won't affect the running of the company, likely to employ specialists. |
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ltd
limited or unlimited liability? |
limited
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ltd
bad things |
shares not sold in the stock market,
accounts can be accessed by anyone, incorporated-must be a separate legal company, more expensive to set up, not all decisions are made by the owners |
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sole traders:
shares? |
no
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sole traders:
good |
get all the money,
choose hours, make all of the decisions, could work from home |
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sole traders:
bad |
bigger risk of getting into debt,
have to do everything hardly any time off, |
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sole traders:
unlimited liability? |
yes
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what does plc stand for?
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Public limited company
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plc
do you have shares? |
yes
sold in the stock market |
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plc
good |
can sell shares to anyone,
bigger, employ specialists, shares can be given to workers as motivation, death and illness won't affect the running of the company |
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plc
bad |
can be taken over,
accounts aren't private, separate legal company, expensive to set up, must pay dividends, decisions are shared. |
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plc
unlimited liability? |
no
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partnership
shares? |
can be owned by 2 to three people
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partnership
good? |
stress divided,
workload divided, more people to pay off debt, easier to have time off, people can specialize |
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partnership
bad? |
share income,
share decisions, conflicts can occur between owners |
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partnership
unlimited liability? |
YES
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franchise
what is it? |
a license to use/sell a product or service
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franchise
who is a franchisee? |
the person who buys the license
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franchise
who is the Franchisor? |
the person who sells the license.
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franchise
advantages (for franchisees) |
you get a guaranteed area,
you know it works, logos are already well known, advertising is paid for by the franchisor, training and advice on running the business, less risk of failing |
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franchise
disadvantages (for franchisees) |
all supplies and fittings must be brought from the franchisor,
large amount of initial capital is required, annual royalty based on percentage of profit is required, wont have complete control on how the business operates, losses have to be paid by the franchisee. |
