Types of Business Ownership

HideShow resource information
View mindmap
  • 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
      • 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)
    • 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
      • 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
    • 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)

Comments

No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »See all Ownership and control resources »