Most small businesses are sole traders, there is nothing to do so they can start trading.
Examples: Plumbers, hairdressers, newsagents and fishmoungers
- They are easy to set up
- You are your own boss
- You are alone so an decide on what happens to the profit
- You have to work long hours with very little holiday
- You have unlimited liability
They are not thay common. Partners have equal say in decision making and equal shares of profits.
Exampes: Accountancy, solicitors and doctors.
- More owners means more ideas, more people to share workload.
- More oeners means more capital can be generated and put into the business
- each partner is legally entitled for what the other parntners do.
- they have unlimited liability
- can lead to disputes
Private Limited Company
Private means that shares can only be sold if all the shareholders agree.
They have ltd at the end of the company name
- they have limited liability
- they are incorporated they can continue trading after a shareholder dies
- Expensive to set up
- A accounts have to be published annually
Public limited company
Public means that shares in the comapny are traded on the stock exchange which can be bought and sold by anyone.
They have plc at the end of their company name.
- This is where the most capital can be made
- large capital amounts help company to expand and diversify
- shareholders have very little say unless they have a large share
- easy for people to buy shares therefore the risk of take over is high
- hard to make objectives with so many shareholders
Is the right to own another firms proucts
- they can offer training and support
- difficult to set up