Business Studies: Types of a Business Types of a Business 4.5 / 5 based on 3 ratings ? Business StudiesOwnership and controlGCSEAll boards Created by: Aaron BrownCreated on: 05-02-10 21:21 SOLE TRADER -Controlled by one person. A -Small and easy to set up. -Only small amount of capital needs to be invested. -Wage bill is low, as there are no/a small amount of employees. -Easy to keep overall control. D -Only person responsible for business. -long hours and not many holidays. -Development and expansion is difficult - only small amount of capital. Unlimited liability. Unincorporated. 1 of 4 PARTNERSHIP -Owned by 2 or more people. A -Shared responsibility. -More capital. -Less time pressure. -There is someone to consult over business decisions. D -Arguements and disputes can occur. -Distribution of profit can cause problems. Unlimited liability. 2 of 4 LTD (Public Limited Company) -Doesn't sell shares onto the stock market. A -Easy and inexpensive to set up. -Ownership and control are closely connected. Small and less bureaucratic than PLCs, eg decisions can be taken more quickly. D -Lack of capital - no shares/investment in business. -No benifits from economies of scale eg. bulk buying, cheaper borrowing. 3 of 4 PLC (Private Limited Company) -Sells shares onto stock market. 4 of 4
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