Tag: sole trader
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Multinational corporation
Multi-nationals A company which produces or provides services in more than one country The advantages and disadvantages they provide to the country where they operate are: – Advantages: employment, tax revenue, quality products – Disadvantages: harm to domestic industry
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Public and Private companies
Private companies Private limited is a business owned and managed by at least 2 persons Owners are referred to as shareholders Private companies have limited liability Private companies raise finance by issuing share Cannot sell share without consent of the other shareholders Public companies Public limited is a business owned and managed by at…
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Multinational Firms
Why multinational companies are created To operate in many different countries and provide goods and services all around the globe The begin business activities in other countries to avoid trade barriers They want aim to understand the tastes and needs of their customer by employing their marketing staff in the country Reasons for the…
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What is a joint venture?
Joint venture Joint venture happens when two separate companies join hands to complete a project They share knowledge and expertise to complete the project successfully
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What is a Franchise?
Franchise To use the name of a large business to conduct business activities Franchisee uses the name Franchisor grants the permission to franchisee to use the name for a fees Eg. Mc Donald’s has many restaurants all over the world which are mostly run by the franchisees
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What is limited company?
Limited company A business owned and managed by a group of people Directors make the decisions Profit is shared among the shareholders If businesses lose money the shareholders don’t have to sell their personal assets to repay creditors
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What is Partnership?
Partnership The business is owned and managed by 2-20 people Partners make the decisions Profit is shared among the partners If businesses lose money, the partners have to sell their personal assets to pay off creditors (unlimited liability)
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Types of Business organisations
Types of business organisations Sole trader Partnership Limited companies Franchise Joint ventures
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Private Sector Organisations
Organizations in the private sector Sole trader Partnerships Private limited company Public limited company Co-operatives Aims of organisations in the private sector Sole traders Make profit or survive in recession Make all decisions Partnerships To make profit Get more money and ideas Private limited companies Limited liability and make profit Public limited companies Raise…