Sole trader advantages - Study guides, Class notes & Summaries

Advantages of knowing contribution per unit (6) correct answersAllow review of variable costs, calculate break even, target setting, helps with overall planning, comparison between different products, can reduce price or increase price if necessary Advantages of shares correct answersValue of shares can go up long term, companies may offer dividends payments, can spread it across a range of companies Advantages of ratios (4) correct answersSimple, easily comparable, analyse performance,...

ACCA FA Practice & Revision Kit Study Questions and Answers 1.1 Who issues International Financial Reporting Standards? A The IFRS Advisory Committee B The stock exchange C The International Accounting Standards Board D The government - ANSWERC The role of the IASB is to develop and publish International Financial Reporting Standards. 1.2 Which groups of people are most likely to be interested in the financial statements of a sole trader? 1 Shareholders of the company 2 The business...

Business Management Unit 3 Exam Revision Questions and Answers ( Certified solutions) Business - ANS- An organisation that aims to produce goods/services to satisfy the needs and wants of consumers Sole trader - ANS- Business that is owned and operated by one person Advantages sole trader - ANS- Simple and inexpensive to set up Complete control No disputes Keeps all profits Disadvantages sole trader - ANS- Unlimited liability Burden of managing whole business Required to perform...

VCE business management Unit 3 & 4 (notes) Questions and Answers ( Rated A) Sole trader - ANS- A sole trader is a business that is run and owned by one person. The sole owner provides all financing and is responsible for decision making. What are the advantages of being a sole trader? - ANS- Owner keeps all profits: All profits are kept and the owner doesn't have to share with partners Low cost of entry: It doesn't cost much, so a sole trade can operate right away e.g don't have to...

AQA A level Business - Unit 1 Latest Update (2022/2023) – Scored A+ Key issues with different forms of business Unlimited/ limited liability, Ordinary share capital, Market capitalisation and Dividends. Budgets Agreed ceiling on the monthly spending by any department or manger. Corporate Objectives Targets for the whole business, such as profit to rise by 20% a year for the next 3 years for the whole business. Delegated Decision making power is passed down the the hierarchy. Entrepreneur P...

Pearson Edexcel GCSE Business (Theme 1) Question with complete solution 2023Unlimited liability The owner is responsible for the businesses debts 3 disadvantages of a partnership 1. unlimited liability 2. profits are shared 3. there may be disagreements 4. 20 people max. 5. partnership ends when one partner leaves 6. decisions made by one partner can affect all partners 3 disadvantages of a franchise 1. unlimited liability 2. franchisees need to pay an initial fee as well ...

Unit 1 Business Management Questions and Answers ( 100% pass) four basic factors of production (business inputs) - ANS- - land - labor - capital - entrepreneurship/enterprise four main functional departments of businesses - ANS- - human resource management - finance and accounts - marketing - operations management four main sectors of industry- explain each - ANS- - primary: extract natural resources - secondary: factories, creates products/production - tertiary: sell the products -...

IB Business Management topic 1 (for study) Questions and Answers ( Certified solutions) Business - ANS- A decision-making organization involved in the process of using inputs to produce goods and services Market - ANS- A place or process whereby buyers (customers) and sellers (businesses) meet to trade Factors of production - ANS- Land, Labor, Capital, Enterprise Financial returns for land - ANS- rent Financial returns for labor - ANS- wages/salaries Financial returns for capital - AN...

PARTNERSHIPS: What is a partnership? s.1(1) Partnership Act 1890 Partnership = persons carrying on business with a view to profit. – May form a partnership irrespective of contrary intention. A partnership is formed once the definition is satisfied, not when a decision to form a partnership is made. Existence of partnerships: s.1(1) PA 1890 No formality is needed to establish a partnership so a partnership can be formed without the specific intent of the parties to form one. s.2(3) ...

Business Management UNIT 3/4 EXAM Questions and Answers ( Graded A) Sole Trader - ANS- Businesses owned and operated by a single individual. Advantage: -Owner has complete control over all decisions in the business - The owner has the right to keep all the profits after taxes Disadvantage: - Unlimited liability for business debts - Burden of management and failure all falls to the owner Partnership - ANS- Businesses that are owned by a minimum of 2 and a maximum of 20 people. A partne...