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
- Partnership - A business with 2 - 20 or more owners that control the business.
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