Business ownership (OCR GCSE Business): Flashcards
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15 cards from this deck
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Practise the cards
15 cards from this deck
4 main forms of business ownership
4 main forms of business ownership
Sole trader, partnership, private & public limited companies
Sole trader definition
Sole trader definition
One person who owns business, keeps all profits, liable for all debts
Sole trader liability type
Sole trader liability type
Unlimited liability - owner liable for all debts
Number of individuals in a partnership
Number of individuals in a partnership
2-20 individuals
Partnership liability type
Partnership liability type
Unlimited liability - owners liable for all debts
Private limited company key feature
Private limited company key feature
Limited liability and sells shares privately
Private limited company setup cost
Private limited company setup cost
More expensive & time consuming than sole trader/partnership
Public limited company share selling
Public limited company share selling
Publicly offers shares via stock exchange
Public limited company disadvantage
Public limited company disadvantage
Greater public scrutiny, accounts available to competitors
Limited liability meaning
Limited liability meaning
Owners don't use own savings to pay company debts
Unlimited liability meaning
Unlimited liability meaning
Owners must pay back all business debts personally
Sole trader suitable for
Sole trader suitable for
Start-ups needing small finance & limited skills
Partnership suitable for
Partnership suitable for
Start-ups/established needing larger finance & more skills
Private limited company suitable for
Private limited company suitable for
Start-ups/established wanting growth & larger finance
Public limited company suitable for
Public limited company suitable for
Established businesses needing very large finance