Economics- The Private Firms

kushagramodi56's version from 2015-05-11 18:31


Question Answer
Functions of sole trader1. 100% ownership 2. Keeps all profit 3. In bad year, may not earn profit 4. Retain control of company 5. Unlimited liability
What is meant by unlimited liabilityIf company goes bankrupt, creditors can seize personal assets
Functions of partnership1. No 100% ownership 2. Shares profit 3. In bad year, losses shared 4. Loses control of company 5. Shares Unlimited liability 6. More expertise and funds provided
Functions of ltd1. Shares sold at desecration of director 2. Control of who sell shares to 3. Limited liability 4. Appoint board of directors 5. Issue dividents 6. Produce account
Functions of plc1. No control of who sell shares to 2. Limited liability 3. Appoint board of directors 4. Sell shares at any time 5. Issue dividents 6. Produce account
Function of multinationalsOperate worldwide
+ve of multinationals to countries producing inIncreases employment and new products/technology. Speeds up development.
-ve of multinationals to countries producing inCompanies not paying enough and emitting pollution e.t.c
+ve to multinationalsAccess to natural resources, source of cheaper labour and opportunity for global market.
-ve to multinationalsDifferent tastes , requirements and legal standard. Products may be more costly to produce.
Function of cooperativesPeople working together to make decisions, work and share profits
Functions of public corporations1. Owned by tax payer/ government 2. Aim to provide public service 3. Not run for profit 4. Funded by taxation revenue