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Starting up a new business. Key vocabulary

Sonido

 

 

Key Vocabulary

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When an individual wants to set up their own business they have to decide what legal form their business will take. They can choose between sole traderpartnership or limited company.

If a person wants to work on their own, they choose either sole trader or limited company. If they want to work with others, they can choose between a partnership and a limited company. It is believed that a limited company gives more credibility than a partnership or sole trader.

Sole Trader

This is the easiest way of starting a business. You are self-employed and entirely responsible for all aspects of running your own business. On the other hand, owners are personally responsible for all business debts. Sole traders tend to be for small businesses.

Partnership

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A partnership is an association of two or more people. It is relatively easy to establish. You have to divide both the profits and debts. You also have to divide duties and responsibilities according to personal expertise and abilities. Disagreements among partners can often harm partnership businesses.

Limited company

A Company can be formed with a minimum of two people becoming its shareholders. Investors can easily buy and sell stocks on the Stock Market. A limited company enables anyone with some money to buy the stock and become a part owner of the company. As a result, this type of company can easily raise capital for business expansion. Investors control the company through the election of a managing body, known as a board of directors.

 

Questions

What type of business would you advise the following people to set up and why?

(Haga doble click sobre las preguntas para ver las respuestas; un click vuelve a posición original)

 

questions

 
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