Business Unit 1.3 - Ownership

  • Created by: LukeRF25
  • Created on: 22-01-19 10:09
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  • Business Unit 1.3  - Ownership
    • Partnership - A business with 2 - 20 or more owners that control the business.
      • e.g accountants and solicitors.
      • Shared work load
      • Unlimited Liability
      • Each partner is resposible for each of their debts
      • Share the risk e.g 1 owner gets badly ill
    • Sole Trader - A business with one person in control of the business.
      • e.g a plumber or electrician.
      • -Unlimited Liability
      • -Cheap and easy to start up
      • -Total control
      • -Difficult to raise finance as they are small
    • Private limited company - Owned by its shareholders run by directors and most importantly where the liability of shareholders for the debts of the  company is limited.
      • Limited Liability
      • -Has to publish private financial details.
      • -Can be complicated to start up
      • -Easier to get a bank loan.
      • e.g Eddie Stobart & Raleigh UK Ltd
    • Public Limited Company - A company whose securities are traded on a stock exchange and can be bought and sold by anyone.
      • -Costly and complicated to set up.
      • -Has to publish private financial deails
      • -Limited Liabilty
      • -Easier to raise money from banks
      • e.g Tesco and Sky

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