- Created by: 15Jay.Hunter
- Created on: 22-06-18 10:56
Owners run the buisness financially and are internal stakeholders in the buisness.
Sole traders are people who own the business themselves and often are the only employee.
Advantages:Can work when they want, only pay themselves.
Disadvantages: Full liability and when their ill they dont earn money.
Two owners of the business.
Advantages: Limited liability, more money going in
Disadvantages: Less money going to yourself, less control in the buisness.
A Ltd is a business with limited shares and is owned by many people but however they choose who they sell shares to and its usually a big buisness.
Advantages: Choose who to sell to, if you have the majority share what you say happems.
Disadvantages: Less money for yourself, less control in the company.
A Public limited company is a company whos shares can be bought buy the public.
Advantages: More money coming in, lots of small percentage holders so they have less control but more money is coming in.
Disadvantages: You dont know who buys a share, harder to contact every owner/arrange meetings.
A sleeping partner puts money into a company without any part in running it, they can only lose the money they invested.
Limited Liability Partnership.
A LLP is because a recent change in law allows for a partnership to be a LLP which means they can only lose the money they put in if it goes bust.
Liability is when someone is responsible for something, a Sole trader has all the liability and if the company goes bust things will be taken off of that person. However if a Partnership, Ltd or Plc goes bust things will be taken equally so everyone has limited liability (a sole trader has unlimited liability).