features of unincorporated businesses
This situation occurs when the business is unable to pay its debts
Bankruptcy
Where two business in the same industry and at the same stage of production merge
why do businesses fail?
to much competition, poor management, located in wrong place, poor cash flow and poor quality of goods and services
The owners are personally liable for debts which the business may have
Unlimited Liability
is backwards vertical integration where a business takes over a supplier
True
what do entrepreneurs do?
is someone who recognises a business opportunity and who is prepared to take a risk in setting up a business to make the most of an opportunity
Income tax is paid on the profit that the business makes
Tax on profits
what is finance
finance can be raised through sale and issue of shares
remains private to the owners of the business
Financial information
Merger takeover
Diversification
some financial information is available to shareholders and the general public, what is this feature?
financial information
The business, in its present form, ceases on the death of one of its owners
Continuity