Aims and Organisations - Flash Cards

Question	Answer
What is a Sole Proprietor?	An individual who is the sole owner of a business that is neither a partnership nor a company, owned by one person only.
What is a Public Limited Company?	Its usually a large, well known business. This could be a manufacturer or a chain of retailers. They usually share trades on the stock exchange.
What is a Private Limited Company?	A small business such as an independent retailer in a market. Shares are not traded on stock exchange.
What is the difference between a franchisee and a franchisor?	Franchisee's buy the right from a franchisor and a franchisor sells to the franchisee.
Explain a partnership.	Partners in a business, they usually have a shared responsibility however, many disputes can arise over decisions made. Partners have unlimited liability.
What is a sole trader?	They provide a specialist service like hairdressers etc. They have unlimited liability so they have to pay for their debts out of their own pockets.
How can an owner be guaranteed a place into running the business?	They must be elected to the Board of Directors (BOD)
Why should you open a franchise?	Its usually 'less risky' than opening a independent retailer as a franchise is well known etc.
What is a limited company usually called?	They are usually named incorporated which means they have their own legal identity.
What is the owner of a limited company usually called?	A shareholder, as the company is divided up into equal parts called shares.

Resource summary

	Created by ryanculham almost 10 years ago