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AS LEVEL BUSINESS GROUP 3 - Coggle Diagram
AS LEVEL BUSINESS GROUP 3
Liabilities
Limited liability
the owners are only liable to the amount of money that they invested into the business
Unlimited liability
the business owners are liable for all loss of the business, no matter the cost
Business structure
Unincorporated
Unincorporated businesses do not have a separate legal personality.
Incorporated
An incorporated business has a separate legal personality.
Continuity
The continue of a bs despite the death of an owner íntead of break-up or dissolution
Ownership continue through inhertance of the shares
Usually limited company have it because they sell share and divide the control
Ex: Apple-Steve Job
Extension
Benefit
Sell share to public
More capital
Challege
Less Control
Less profit
Risk of takeover
Slow in decision making
Divorce of ownership
Happens when an owner does not frequently get invovled in the decision-making process thus resulting in divorce of ownership
Is only available in public limited company or private limitited company
MOA, AOA
Used for the government to keep an eye on the private limited company
Articles of Association (AOA) is the secondary document, which defines the rules and regulations made by the company for its administration and day-to-day management.
Memorandum of Association (MOA) is the supreme public document that contains all the information that is required for the company at the time of incorporation.
Seperate legal indentity
Example: tesla only lose share when the company fail
draw back: lose share when the company fail.
when you and anyone involved in your company are separate from your business for legal purposes. Benefit: no debt on the owner, less bad reputation associated with the bussness