Business Structures Flashcard

Front

What is one advantage of a sole trader business structure?

Back

Easy to set up with few legal formalities

Front

What is an advantage of a private limited company (Ltd)?

Back

Limited liability protects owners' personal assets

Front

Which business structure allows for shared decision-making? Sole trader, Partnership, Private limited company (Ltd), Public limited company

Back

Partnership

Front

What is one disadvantage of a business structure with more shareholders?

Back

Slower decision-making

Front

Advantage of a Public Limited Company (PLC)?

Back

Limited liability for shareholders

Front

What is a disadvantage of a Public Limited Company (PLC)?

Back

Expensive and complex to set up

Front

Why might a Public Limited Company (PLC) face a risk of hostile takeovers?

Back

Shares are sold to the public

Front

Potential conflict in a Public Limited Company (PLC)?

Back

Between owners and managers

Front

What is a disadvantage of having more legal requirements in a business structure?

Back

Increased costs

Front

What is an advantage of a franchise in terms of marketing?

Back

Marketing is often handled centrally