Edexcel Business Types Flashcard

Front

What is the main advantage of a sole trader?

Back

Full control and all profits

Front

What is the main disadvantage for a sole trader? Options: Separate legal entity, Limited liability, Easy to raise capital, Unlimited liability

Back

Unlimited liability

Front

What are the advantages of a partnership?

Back

Shared responsibility, decision-making, wider pool of skills

Front

What are the disadvantages of a partnership?

Back

Shared decision making, potential for disagreements

Front

What is the main difference between a PLC and an LTD?

Back

Ownership and ability to sell shares to the public

Front

What is a characteristic of a PLC?

Back

It is a separate legal entity to the owner

Front

What is the main advantage of a PLC?

Back

Can sell shares to the public

Front

What is a characteristic of a partnership?

Back

Unlimited liability for the partners

Front

What is the main disadvantage of a PLC?

Back

Complexity and cost of formation

Front

What is unlimited liability?

Back

Personal possessions CAN be taken to repay a debt.