881593
Description
Flashcards by patricksmyth20, updated more than 1 year ago
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Created by patricksmyth20
over 10 years ago
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| Question | Answer |
| What is a sole trader? | A sole trader is someone who owns and runs their own business |
| List the steps in becoming a sole trader: | 1) Find a suitable premises 2) Decorate premises 3) Register name with Dublin Castle 4) Apply for license if one is required 5) Advertise your business |
| What is unlimited liability? | Unlimited liability is when the sole trader is completely responsible for their debts, and may have to pay them off with their personal possessions |
| Give 3 Advantages of Being a Sole Trader | 1) You keep all the profits 2) You make your own decisions 3) You choose your employees |
| Give 3 disadvantages of being a sole trader: | 1) Unlimited liability 2) Decision making can be hard 3) Have to supply all finance |
| What is a Private Limited Company? | A Private Limited Company is when between 1 and 50 people come together to put up money to establish a new business with limited liability |
| What is limited liability? | Limited liability is when the shareholders of a Private limited company only lose the amount of money they invested if the company goes bankrupt. |
| Give 3 advantages of a Private Limited Company: | 1) Decision making is shared 2) Easier to raise capital 3) Limited liability |
| What is an Annual General Meeting (AGM)? | An Annual General Meeting is a meeting a private limited company must have once a year. |
| What happens at an AGM? | 1) Shareholders hear from the directors how the company is doing 2) Shareholders can ask questions 3) Directors decide shareholders' dividends |
| What is in the Memorandum of Association? | 1) Name of company followed by "Ltd." 2) Objectives of the company 3) Statement that the company has limited liability 4) Capital of the company 5) Names of those who formed company and number of shares purchased by each of them |
| What is in the Articles of Association? | 1) Amount of capital 2) Different types of shares available 3) Voting rights attached to each share 4) Number of directors and how they should be elected 5) The procedure for calling meetings of shareholders |
| What is the Certificate of Incorporation? | The Certificate of Incorporation is written proof that the company has been registered as a private limited company |
| What does the Certificate of Incorporation contain? | 1) Date company was registered 2) Company registration number |
| What is in the Form A1? | 1) Declaration of Compliance - directors agree to run the company properly and fairly 2) Written Consent - directors sign and say they want to be directors of the company |
| What is state ownership? | Companies owned by Government |
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