LEGAL STRUCTURES

UNINCOPERATED: 

• SOLE TRADER
• PARTNERSHIP

INCOPERATED 

• PRIVATE LIMITED COMPANY
• PUBLIC LIMITED COMPANY 

SOLE TRADER

PUBLIC LIMITED COMPANY

PRIVATE LIMITED COMPANY

CO-OPERATIVES

PUBLIC SECTOR

PRIVATISATION - GOVERNMENT SELLS OFF A COMPANY

ADVANTAGES

• LIMITED LIABILITY
• RASING FINANCE
• EXPERTISE

DISADVANTAGES

• CONTROL
• HIGHER PRESSURE PEFORM
• SLOWER DECISION MAKING
• GREATER ADMIN COST

ADVANTAGES

• SIZE (IMAGE / MARKET POWER)
• RAISE MORE EQUITY (CASH) SO GROW BIGGER

DISADVANTAGES

• THREAT TAKEN OVER
• EXPENISVE SET UP & MAINTAIN

RUN BENEFIT EMPLOYEES, CUSTOMERS, LOCAL COMMUNITY OR SUPPLIERS

OWNED CONTROLLED BY OUTSIDE INVESTORS

LEGAL STRUCES IS INDUSTRIAL & PROVIDENT SOCIETY

MUST REPRESENT: HONESTY, OPENESS, SOCIAL RESPONSIBILITY & CARING

PRINCIPLES: OPEN MEMBERSHIP, DEMOCRATIC MEMBER CONTROL, PROVISION EDUCATION, PROVISION TRAINING & INFO & CONCERN COMMUNITY

CONSUMER: CUSTOMERS MEMBERS BUSINESS

PRODUCER: GROUP BUSINESS WORK TOGETHER BENEFIT FROM FACTORS E.G. INCREASED BARAGANING POWER

WORKERS: OWNED & OPERATED BY EMPLOYEES

WHAT

• PUBLICALLY OWNED
• PROVIDE GOODS / SERVICES LOCAL PUBLIC AT NATIONAL & LOCAL GOVERNMENT LEVELS
• ORGANISATION CONTROLLED GOVERNMENT / LOCAL AUTHORITY

WHY

• PROVIDE ESSENTIAL SERVICE
• PREVENT EXPLOITATION CUSTOMERS
• AVOID DUPLICATION
• PROTECT JOBS & MAINTAIN KEY INDUSTRY

SALE PUBLIC SECTOR TO PRIVATE INVESTORS

WHY?

• STATE RUN PERCIEVED INEFFICENT
• FINANCIAL BURDEN GOVERNMENT (EG BRITISH RAIL)
• SELLING RAISED VALUABLE MONEY

DISADVANTAGES

• PRICE INCREASE
• CUT JOBS - REDUCE SERVICES

SHARES PAY DIVIDENDS 

STOCK EXCHANGE PAY TWICE YEAR

VALUE INCREASE SELL PROFIT

ENOUGH SHARES INFLUENCE MANAGEMENT COMAPNY 

VENTURE CAPATALIST BUY 80% INSITS CHOOSING DIRECTORS

SHARES PLC FIRST OFFERED SALE PUBLIC

COMANY GIVEN LISTING STOCK EXCHANGE

COMPANY RAISE SUBSTANTIAL FUNDS

SHAREHOLDERS 'CASH IN' (SELL SHARES)

COMPLEX & EXPENSIVE