Types of business ownership (Edexcel GCSE Business): Flashcards
📚Flashcards
Practise the cards
15 cards from this deck
ShowHide
Practise the cards
15 cards from this deck
Structure determining how a business operates
Structure determining how a business operates
Legal structure
4 factors affecting business ownership choice
4 factors affecting business ownership choice
Finance, Size, Security, Privacy
Limited liability meaning
Limited liability meaning
Only lose investment; personal assets protected
Unlimited liability meaning
Unlimited liability meaning
Personally responsible for all business debts
Business types with limited liability
Business types with limited liability
Private limited company (Ltd) and PLC
Business types with unlimited liability
Business types with unlimited liability
Sole traders and partnerships
Simplest form of business ownership
Simplest form of business ownership
Sole trader
Sole trader: number of owners
Sole trader: number of owners
One person
Main disadvantage of sole trader
Main disadvantage of sole trader
Unlimited liability - personal assets at risk
Setting up a sole trader business
Setting up a sole trader business
Straightforward with minimal paperwork
Partnership: number of owners
Partnership: number of owners
Two or more people
Key advantage of partnerships
Key advantage of partnerships
Different expertise and skills combined
What happens if one partner leaves
What happens if one partner leaves
Business automatically ends
What a private limited company is
What a private limited company is
Separate legal entity from owners (shareholders)
Definition of shareholders
Definition of shareholders
People who own shares (parts) of a limited company