Flashcards in this deck (45)

• What is a sole proprietorship?

  A business owned and operated by a single individual.
  business sole_proprietorship
• What is an advantage of a sole proprietorship?

  • Full Control: The owner makes all decisions and retains all profits.
  business advantages
• What is a disadvantage of a sole proprietorship?

  • Unlimited Liability: The owner is personally liable for all debts and obligations.
  business disadvantages
• What is a partnership?

  A business owned by two or more individuals who share profits and responsibilities.
  business partnership
• What is an advantage of a partnership?

  • Shared Resources: Partners can pool resources and skills, leading to better decision-making.
  business advantages
• What is a disadvantage of a partnership?

  • Joint Liability: Partners are personally liable for the business’s debts, which can lead to disputes.
  business disadvantages
• What is a Private Limited Company (Pty Ltd)?

  A company owned by a small group of individuals, where shares are not publicly traded.
  business private_limited_company
• What is an advantage of a Private Limited Company?

  • Limited Liability: Owners are not personally liable for the company's debts beyond their investment.
  business advantages
• What is a disadvantage of a Private Limited Company?

  • Regulatory Requirements: More regulations and legal requirements compared to sole proprietorships and partnerships.
  business disadvantages
• What is Limited Liability in a company?

  Shareholders are only liable for the company’s debts up to their investment amount.
  business law
• What is Perpetual Succession?

  The company continues to exist even if ownership changes.
  business law
• What is an advantage of a company in Attracting Investment?

  Easier to attract investors and raise capital through share sales.
  business finance
• What is a disadvantage of a company related to Complexity?

  More regulatory requirements and paperwork compared to sole proprietorships and partnerships.
  business law
• How is Profit Distribution handled in companies?

  Profits are distributed as dividends, which may be lower than anticipated.
  business finance
• What is a limitation of Limited Ownership Transfer?

  Shares cannot be sold publicly, which may limit liquidity for investors.
  business finance
• What is a Public Limited Company (PLC)?

  A company whose shares are sold to the public on a stock exchange.
  business finance
• What is an advantage of a PLC regarding Access to Capital?

  Ability to raise significant capital by selling shares to the public.
  business finance
• What does Limited Liability mean for PLC shareholders?

  Shareholders are only liable for the amount they invested.
  business law
• How does a PLC gain Market Credibility?

  Being listed on a stock exchange can enhance the company’s reputation.
  business finance
• What is a disadvantage of a PLC related to Regulatory Scrutiny?

  Subject to strict regulatory requirements and reporting obligations.
  business law
• What is a cost associated with a PLC's Cost of Going Public?

  Initial costs and ongoing expenses of being a public company can be high.
  business finance
• What does Loss of Control refer to in a PLC?

  Shareholders may influence business decisions, which can conflict with original owners' vision.
  business management
• What is a Franchise?

  A business model where a franchisee operates a business using the branding and operational model of a franchisor.
  business franchising
• What is an advantage of a franchise regarding Established Brand?

  Franchisees benefit from the recognition and reputation of the franchisor’s brand.
  business marketing
• What support do franchisees receive from franchisors?

  Franchisors typically provide training and ongoing support to franchisees.
  business support
• What is a benefit of a franchise in terms of Lower Risk?

  Higher chances of success compared to starting an independent business.
  business risk
• What are the high initial costs associated with franchises?

  • Franchise fees
  • Ongoing royalties
  business franchising
• What is a disadvantage of limited control for franchisees?

  Franchisees must adhere to the franchisor’s practices and regulations.
  business franchising
• What does dependency on franchisor imply for franchisees?

  Success can depend heavily on the franchisor's performance and decisions.
  business franchising
• Define a multinational company (MNC).

  A corporation that operates in multiple countries.
  business mnc
• What is an advantage of global reach for MNCs?

  Ability to access larger markets and diversify operations.
  business mnc
• What does economies of scale mean for MNCs?

  Increased production can lead to lower costs per unit.
  business mnc
• How do MNCs benefit from access to resources?

  They can leverage resources and talent from various countries.
  business mnc
• What is a challenge of complex management in MNCs?

  Managing operations across different countries can be costly and challenging.
  business mnc
• What are cultural differences in the context of MNCs?

  Navigating varying cultures, legal systems, and market dynamics.
  business mnc
• What are reputation risks for MNCs?

  Negative publicity in one country can impact global operations.
  business mnc
• Define a corporation.

  A legal entity separate from its owners, created under state laws.
  business corporation
• What is an advantage of limited liability for shareholders in a corporation?

  Shareholders are not personally liable for corporate debts.
  business corporation
• How can corporations raise capital?

  By issuing shares to raise funds.
  business corporation
• What does continuous existence mean for corporations?

  Corporations can continue to exist independently of their owners.
  business corporation
• What is a disadvantage of regulatory compliance for corporations?

  Subject to extensive regulations and legal requirements.
  business corporation
• What is double taxation in corporations?

  Corporations are taxed on profits, and shareholders on dividends.
  business corporation
• What does less control mean for shareholders in a corporation?

  Shareholders may have limited influence over management decisions.
  business corporation
• Why is it important to understand different types of private sector businesses?

  It helps appreciate the complexities and opportunities in entrepreneurship.
  business education
• How does knowledge of business types empower students?

  It enables informed decisions in future business endeavors.
  business education