What is a sole trader?
A business that is owned by one person
Advantages of a sole trader
Easy to set up
Easier to make business decisions
Get to keep all of the profit
Disadvantages of a sole trader
Unlimited liability
Takes up a lot of owners personal time
May be harder to raise finance
What is a partnership
A business that is owned and run by 2 or more people
Advantages of a partnership
Easier to raise finance
Shared workload and decision making
Wider range of skills from the different partners
Disadvantages of a partnership
Unlimited liability
Harder to make business decisions
Have to split the profits
Limited liability
Where the business debts doesn’t get paid off with any personal assets
Unlimited liability
Where the business debts have to be paid off with any personal assets
What is a Private Limited Company (LTD)
A type of business ownership where it is divided into shares but they are not sold to the public
Advantages of an Private Limited company
Limited liability
Disadvantages of a Private Limited company
High setup cost
Limited capital generation
Can’t sell shares to the public
What is a public limited company
Advantages of a Public limited company
Access to capital from public share sales
Limited Liability
Business continuity
Disadvantages of a public limited company
High set up and operational costs
Potential loss of control by founders
Vulnerable to hostile takeovers
What is meant by marketing
The process of identifying, anticipating, and satisfying customers needs to meet business objectives involving market research and the 4ps of the marketing mix
What is a Merger
When two or more businesses agree to join together to form a single larger business
What is market share
The percentage of total sales for a specific product or service that a business controls within a given market
What is a takeover
Where one business buys over 50% of the shares of another company gaining control of it
What does operate mean
A business is actively functioning to provide goods/services to customers
What does profit mean
When the business is making more cash that the costs of selling a good/service
What are resources
The components and factors a business needs to operate and achieve its goals
