Why do Businesses change their Ownership Structure? (Leaving Cert Business): Flashcards
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Practise the cards
10 cards from this deck
Why businesses change ownership: expansion
Why businesses change ownership: expansion
Provides capital & resources, helps secure financing
Why businesses change ownership: limited liability
Why businesses change ownership: limited liability
Protects personal assets, reduces risk, attracts investors
Corporation tax rate for limited companies
Corporation tax rate for limited companies
12.5%
Higher income tax rate paid by sole traders
Higher income tax rate paid by sole traders
40%
Benefits of privatisation
Benefits of privatisation
Increased efficiency, competitiveness & innovation
Purpose of nationalisation
Purpose of nationalisation
Strategic control of essential services for public
Year Aer Lingus fully privatised
Year Aer Lingus fully privatised
2015
Company that bought Aer Lingus
Company that bought Aer Lingus
IAG (also owns British Airways & Iberia)
Criticism of Aer Lingus privatisation
Criticism of Aer Lingus privatisation
Operates Manchester-US routes that don't benefit Ireland
Support for Aer Lingus privatisation
Support for Aer Lingus privatisation
Unfair competition; taxpayers subsidised losses