different types of companies

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5 different types of business
sole traders, PLC, LTD, non profit organisations
1 of 10
advantages of being a sole trader
based on interest, easy to set up and run, greater owner control, all profits kept, flexible working hours
2 of 10
disadvantages of being a sole trader
unlimited liability, difficulty raising capital, impact of illness, skill shortages
3 of 10
advantages of an LTD
limited liability, money raised selling shares to family/friends, no minimum investment needed before trading, accounts private
4 of 10
disadvantages of an LTD
cant sell shares on stock exchange, transfer of shares must be agreed by directors, annual repots
5 of 10
advantages of PLC
publicity, attracts shares, limited liability, can sell shares on stock exchange
6 of 10
disadvantages of a PLC
decisions made by a lot of people could cause conflict, more risk of takeover, accounts public
7 of 10
how are profits shared to shareholders
dividends
8 of 10
internal sources of finance
retained profit, assets, trade credit
9 of 10
external sources of finance
bank loan, overdraft, factoring
10 of 10

Other cards in this set

Card 2

Front

advantages of being a sole trader

Back

based on interest, easy to set up and run, greater owner control, all profits kept, flexible working hours

Card 3

Front

disadvantages of being a sole trader

Back

Preview of the front of card 3

Card 4

Front

advantages of an LTD

Back

Preview of the front of card 4

Card 5

Front

disadvantages of an LTD

Back

Preview of the front of card 5
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