stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
Types of business organisation Flashcards | StudBud
Explore
/
Types of business organisation
Types of business organisation
16 terms
·
StudBud Administration
·
13,326 plays
types of business organisations 1
Flashcards
16 cards
F
Practice quiz
P
Host live
L
Questions
16
Answers
1
All companies are businesses - all business are companies; which one is true?
firts
both
second
none
2
A main feature of sole trader is
financing by selling shares
no legal distrinction between business and trader
there is loss of privacy
great availability of finance
3
One of the greatest advantages of sole trader is
business is stabe with high chances of continuity
selling shares to collect capital
all profit go to the sole trader
easy access to capital
4
The profit that the owner of the company gets is in the form of
reward
profit
dividend
share
5
What are the features of a sole trader?
owner + limited liability + decision maker
unlimited liability + easy access to capital + privacy
unlimited liability + owner + decision maker + privacy
limited liability + stability of business + dividents
6
A feature of partnership is that
the business is held to a high degree of accountability
partners do not necessary share all the profits equally
it is the easiert way to form a business
partners do share all the profits equally
7
Partnership is
business owned at least by 2 people who share responsibility
a business with peole of similar or related skills
business owned by 2 people
business owned by at least 3 people
8
Usually partners have a legal binding document which is called
binding contract
Memorandum of association
deed of partnership
legal contract
9
When a company "is going public" we mean that
it will put he public interest higher than the private
it offers its shares in the public
it will offer services to the public
it is bought by the public sector
10
The best definition for sole trader is
person who own + runs the business + takes decisions
a business registered according to national legislation
a person who is close to customers
a business owned and controlled by two or more people
11
A disadvantage of opperating a company includes
the company has no control over the stock market
the investor has limited liability
there are limited possibilities for expansion
there is continuity
12
Operating a business as a company has the advantage that
the business is close to the customers
an established structure organisational exists
the company has limied control over who buys its shares
the business is managed by more than one persons
13
Private limited company differs from public limited company in that
it can only sell shares to private and not public organisati
it can only sell shares to people known to the owners
it can only sell shares to individuals and not companies
it cannot sell shares
14
A feature of a partnership is that
the business and the owners are laways divisible
the finance is always limited
the partners own but do not run the company
some parners may be "sleeping partners"
15
The
main
reason for a business to become a company is
access to finance
limited liability
enhanced status
increased stability
16
When a firm sells its shares in the stock market for the first time, it is called
IPO
AGM
LLC
EGM
