Types of Ownership

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  • Created by: Amy Lewis
  • Created on: 26-04-13 17:40

Sole Traders

One Person, owned, controlled, runs the business

ADV

  • keep all profit
  • make all descions
  • work own hours

DIS

  • Unlimited liability
  • stressful
  • need to be good at everything
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Partnerships

2-20 People

DEED OF PARTNERSHIP

ADV

  • more skills
  • more money to put in the business
  • share decisions (better)
  • share work load

DIS

  • Unlimited liability
  • share profit
  • arguements (share control)
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Social enterprise

  • Aimed to help people and society (eg. the Big Issue)
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Private Limited Company

  • Shareholders own it
  • people who are invited can buy shares (friend & family)

ADV

  • Limited liability (dont lose personal possesions)
  • not personally sued
  • less risky
  • easier to borrow from banks

DIS

  • share profit with share holders (dividend)
  • longer to set up
  • more costly to set up
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Public Limited Company

  • Shareholders own it
  • anyone can buy a share

ADV

  • access to finance through shares
  • well known, big reputation
  • limited liability
  • people want to work for you

DIS

  • taken over- 51% shares
  • lose control
  • expensive to set up
  • need £50.000
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