Types of Organisations
- Created by: ZaraZaman
- Created on: 20-02-15 10:22
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- Types of Organisations
- Sole trader
- Unlimited liability
- Owned by ONE person
- Small, Low start up costs
- Owner gets ALL profits, but also responsible for ALL losses
- Owned by ONE person
- Financial capacity is limited
- Can hire people to make up for owners weaknesses
- Unlimited liability
- Public Limited Companies
- Limited liability only
- Raises large amounts of finance from selling of shares
- LARGE IN SIZE
- Financial capital is divided up as shares, which are then sold on the stock market to the general public
- Owned by shareholders
- Controlled by a board of directors
- Private Limited Companies
- Limited liability only
- Hard to raise money
- Shares are sold PRIVATELY to family and friends NOT to general public
- Shares not sold on stock market
- Partnerships
- Unlimited liability
- Minimum of two partners
- Increased skill set and financial capabilities
- Co-operatives
- Limited liability only
- Jointly owned AND run by members
- For member's benefit
- Share of profits, losses and decisions
- Bulk buy allows low prices
- Sole trader
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