Types of Business Ownership
- Created by: kedwards1999
- Created on: 17-04-15 15:56
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- Different Types of Business Partenerships
- Sole Trader
- Business ran by one individual who has full control over working hours etc.
- Easy to set up as a sole trader, you just need the money and sign a simple document
- Any profits made in the business or company is ALL yours!
- No one can see how much profits you are making
- Any profits made in the business or company is ALL yours!
- If business or company goes bankrupt your personal assets may be needed to be sold to pay off the depts. (you have unlimited liability)
- You get no help in running the business
- If you are off ill it is hard to keep the business running (or need a holiday)
- You get no help in running the business
- Partership
- Business ran by usually between 2 and 20 people
- Unlimited liability
- Profits have to be shared
- Arguments may occur
- Someone may drop of the partnership leaving you with debts to pay off
- Arguments may occur
- Profits have to be shared
- Workload is shared
- The set up money is less for each individual
- Less of your personal assets would need to be sold to pay of any debts if the business went backrupt
- The set up money is less for each individual
- Private Limited Company
- Has Ltd. after its name and is a business ran by individual(s) and shareholders
- More capital is coming into the business from shareholders
- Limited Liability
- People can see your profit or loss made in a specific time period (this could result in shareholders backing out or staff wanting more wages or shareholders wanting more dividends
- Your are passing over a huge chunk of your life (if you have worked and built up this company you are sharing it with others (shareholder)
- Public Limited Company
- Has PLC after its name and is a business ran by individual(s) and shareholders
- Limited Liability
- More capital coming in from shareholder so you can expand and develop the business/company
- People can see your profit or loss made in a specific time period (this could result in shareholders backing out or staff wanting more wages or shareholders wanting more dividends
- Your are passing over a huge chunk of your life (if you have worked and built up this company you are sharing it with others (shareholder)
- Sole Trader
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