business studies

Definitions of business organisations

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  • Created by: aiyesha
  • Created on: 09-04-08 17:31

sole trader

  • unlimited liability
  • only one owner
  • take all the profits
  • have to bear all losses
  • do not have a range of skills in the business
  • have to make all the decisions by themselves
  • sole trader's accounts are kept private
  • they do not get any holidays
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  • unlimited liability
  • can have between 2 and 20 partners
  • partners can have arguments
  • can share skills and decisions
  • accounts for these businesses are also kept private
  • can have a 'sleeping partner' who justs invets in the business but does not make any decisions
  • may have a deed of partnership OR profits are split 50:50
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private limited company (ltd)

  • limited liability
  • only need £2 capital to start up
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public limited company (plc)

  • limited laibility
  • can get finance from selling stock on the stock market
  • need £50,000 to set up
  • expensive and time consuming to set up
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