1.4

• Limited Liability

  financial responsibility of business owners only for what they invested in a business
• unlimited liability


  requirement that an owner is personally and fully responsible for all losses and debts of a business
• Separate Legal Entity

  business which is granted a charter establishing its own rights, privileges andliabilities distinct from those of its members
• Continuity of existence


  A corporation continues to exist regardless of the life spans of the founders, shareholders, managers, and directors.
• CRO

  companies registration office
• CRO

  Central register for Irish companies and business names
• Sole trader

  business owned and operated by one person
• Features of a sole trader

  Complete control over how the business is ran. They make all of the decisions.
• Features of a sole trader

  Keeps all of the profits.
• Features of a sole trader

  No continuity of existence if there is no one else to take over the business if the owner dies or retires.
• Sole Trader's liability is

  unlimited
• Partnership

  a business organisation owned by two or more persons who agree on a specific division of responsibilities and profits
• Partnership Agreement

  a written (legal) agreement among all owners detailing the rules and procedures that guide ownership and operations
• Features of a Partnership

  All partners have unlimited liability
• Features of a Partnership

  Owned by two or more people with a maximum of 20
• Features of a Partnership

  Decision making is shared. This can be effective as each partner can have different skills and knowledge.
• Features of a Partnership

  Profits are shared equally, or as set out in the Deed of Partnership.
• Private limited company (Ltd)

  A business owned by shareholders with limited liability but whose shares cannot be bought by or sold to the general public.
• Constitution


  Document outlines information including: the company's name, statement that the company is a Private Limited Company limited by shares and any other regulations the Government wants to include.
• memorandum of association


  this states the name of the company, the address of the head office through which it can be contacted, the maximum share capital for which the company seeks authorisation and the declared aims of the business and the liability held by shareholders.
• Articles of Association

  this document covers the internal workings and control of the business - for example, the names of directors and the procedures to be followed at meetings will be detailed
• Features of a private limited company

  Equity finance can be raised by selling shares
• Liability of a Private Limited Company is

  Limited
• Control in a private limited company

  Shareholders appoint a board of directors and a CEO or MD. Shareholders can influence decisions at meetings (1share = 1vote)
• Dividends


  Company's share profits to the shareholders based on the corporation's performance.
• co-operative

  Owned and controlled by members. Ran democratically. All members have an equal say.
• State-owned enterprises

  Companies in which all or majority of ownership control is held by the government.
• Example of a state-owned enterprise

  RTE
• Liability of a state-owned enterprise is

  Limited
• public limited company (PLC)

  a limited company, often a large business, with the legal right to sell shares to the general public - share prices are quoted on the national stock exchange
• Liability of shareholders in a PLC is

  limited
• Dissolution of a PLC can occur because of

  Bankruptcy or court order
• Franchise

  A business established or operated under an authorisation to sell or distribute a company's goods or services in a particular area
• Franchise agreements usually take the form of a Ltd company so the liability is

  Limited
• Strategic Alliances and Joint Ventures

  cooperative relationships between two (or more) firms with potential advantages