Types of business ownership

Business Ownership:

Limited Liability - Private Limited Company and Public Limited Company 

Unlimited Liability - Sole Traders and Partnerships 

Advantages:

• Sole Trader makes all the decisions 
• Quick and Easy to set up
• Sole Trader keeps all of the profits 
• Finical information is kept private

Disadvantages:

• Unlimited Liability
• Harder to raise money to start or grow the buissness 
• A lot of pressure on one person
• No one to cover when sole trader is ill or takes time off

Advantages:

• Owners may have wider expertise and can share ideas and desicon making.
• Owners share the risk
• Finicial information is kept private

Disadvantages:

• Desicions made by one partner can affect all partners
• No longer exists if one partner leaves
• Profits are shared 
• Partners may disagree

Advantages:

• Owners have limited liability 
• Customers may trust 'Ltd' more than other businesses 
• Continues to trade even if the shareholders change.
• Could be easier to raise finance to establish or grow the business

Disadvantages:

• More complex to set up than a sole trader or partnership
• Shareholders may disagree
• More information must be reported to the government 
• Financial information is published and can be accessed by others