Types of Organisations

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  • 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
      • Financial capacity is limited
        • Can hire people to make up for owners weaknesses
    • 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

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