Business Structures and Concepts

Front

What does SME stand for?

Back

Small and Medium-Size Enterprises

Front

What are the three categories of SMEs?

Back

Micro, Small, and Medium

Front

How many staff members does a micro business have?

Back

10 members of staff or fewer

Front

How many staff members does a small business have?

Back

11–49 members of staff

Front

How many staff members does a medium business have?

Back

50–249 members of staff

Front

What is unlimited liability?

Back

Owners are personally liable for the debts of the business, risking personal belongings.

Front

What is limited liability?

Back

Owner’s personal belongings are not at risk; they can only lose what they invest.

Front

What is a sole trader?

Back

A business owned and operated by one person.

Front

List advantages of being a sole trader.

Back

Quick and easy to start up, keep all profits, little paperwork, simple to run, easy to shut down.

Front

List disadvantages of being a sole trader.

Back

Unlimited liability, one owner might not have all skills needed, heavy workload, difficult to raise finance.