Advantages and Disadvantages of Different Forms of Business (AQA A-Level Business): Flashcards
📚Flashcards
Practise the cards
10 cards from this deck
ShowHide
Practise the cards
10 cards from this deck
Sole trader
Sole trader
Business owned and run by one person
Unlimited liability
Unlimited liability
Owner personally liable for all business debts
Limited liability
Limited liability
Shareholders only lose investment; personal assets protected
Partnership
Partnership
Business owned by 2+ people (typically 2-20 partners)
Key advantage of private limited company
Key advantage of private limited company
Limited liability protection for shareholders
Public limited company (PLC) main feature
Public limited company (PLC) main feature
Can sell shares to public on Stock Exchange
Minimum share capital required for PLC
Minimum share capital required for PLC
£50,000
Major disadvantage of PLCs
Major disadvantage of PLCs
Short-term pressure on results from shareholders
Stock Exchange
Stock Exchange
Marketplace where company shares are bought and sold
Separate legal identity
Separate legal identity
Business is distinct legal entity from its owners