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9 Cards in this Set
- Front
- Back
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What is a Sole Trader? |
A sole trader describes any business that is owned and controlled byone person - although they may employ workers. Individuals who provide a specialist service like plumbers, hairdressers or photographers are often sole traders. |
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What are the Advantages of being a Sole trader? |
Easy to set up, Small Capital investment meaning lower start up cost and complete freedom to make decisions. |
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What are the Disadvantages of being a Sole trader? |
Responsibility, Long hours and Unlimited Liability. |
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What is a Partnership? |
Partnerships are businesses owned by two or more people. |
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What is an Advantage of a Partnership? |
One advantage of partnership is that there is someone to consult on business decisions. |
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What is a Disadvantage of a Partnership? |
The main disadvantage of a partnership comes from shared responsibility. Disputes can arise over decisions that have to be made, or about the effort one partner is putting into the firm compared with another. Like a sole trader, partners have unlimited liability. |
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What are Limited Companies? |
A limited company has special status in the eyes of the law. These types of company are incorporated, which means they have their own legal identity and can sue or own assets in their own right. The ownership of a limited company is divided up into equal parts calledshares. Whoever owns one or more of these is called a shareholder. |
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What are the Main 2 types of Limited Companies? |
A Private Limited Company (LTD) and a Public Limited Company (PLC). |
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What is Franchising? |
An entrepreneur can opt to set up a new independent business and try to win customers. An alternative is to buy into an existing business and acquire the right to use an existing business idea. This is calledfranchising. |
