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7 Cards in this Set

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What is the difference between an internet startup and an internet arm?

Internet startup: Raises start-up capital, limit personal liability of owners.

Internet Arm: Already established. Needs to channel existing profits into new markets. Needs to maximize overall profits and diversify losses.

List down different forms of trading.

1. Sole Trader. Self employed. Personally liable for all business losses. Unable to raise significant amounts of credit.

2. Parnership, Unlimited Company. Can raise significant credit.

3. Limited Company. Can raise substantial credit, not personally liable for any business losses.

Highlight key aspects of a business partnership.

Agreement between two or more individuals.

Amount of equity invested by each partner?

P/L division?

Highlight key aspects of a limited liability partnership (LLP)

Limited Liability for all members.

LLP = business partnership, but:

- Reduced responsibility for business debts.

- An application must be filled to Companies house to incorporate an LLP.

Highlight key aspects of a Company as a separate legal entity.

A company is treated as an "individual" in its own right in the eyes of the law. (Unless it's been used to avoid legal obligation. Courts can "lift the veil of incorporation")

Shareholders/company officers are not personally liable for losses.

Company can enter into contracts with shareholders.

Describe three main types of private companies and one main type of public companies.

Private company limited by shares. (Cannot offer shares to public).

Private company limited by guarantee (Members are guarantors rather than shareholders).

Private Unlimited Company - No limited to member's liability.

Public Limited Company - Limits member's liability to amount paid on shares.

Describe the process of setting up a company within the UK.