Business - Private Sector

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  • Created by: Nabeel
  • Created on: 25-09-21 21:20
Limited company
This type of Company exist in their own rights:
The owners and the company are separate legal attires.
Therefore, the finances of the company are separate from the owners.
Shareholders are the owners of limited companies.
They have limited liability and
1 of 6
private limited company.
ADV/DIS
Have Ltd. After the name.
Can only sell shares on to other shareholders I.e. they cannot sell them openly on a stock exchange.
Limited liability.
Separate legal identity.

Some loss of control as shareholders have voting rights.
Unable to sell shares
2 of 6
Public Limited Company
ADV/DIS
A Plc is a public limited company.
As a business grows it may wish to change a business form from an Ltd to a Plc.
Risk of takeover.
Limited liability.
Separate legal identities.

Lack of privacy as financial performance is available for all to view.
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sole trader
ADV/DIS
Unlimited Liability
An individual who owns and runs their own business.
Registered as self-employed with her majesty revenue and customs
Cheap and easy to set up.
All profits go to the sole trader.
Unlimited liability
Limited capital for investments
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Partnership
ADV/DIS
2 or more people that share the costs, risks and responsibilities of being in business together.

Risks, costs and responsibilities are shared
More scope for specialist skills

Unlimited liability
Arguments can occur with decision making.
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Cooperative
Cooperatives are organisations that operate for the wellbeing of their members.
Taxation benefits are possible for some cooperatives.
Limited Resources
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Other cards in this set

Card 2

Front

private limited company.
ADV/DIS

Back

Have Ltd. After the name.
Can only sell shares on to other shareholders I.e. they cannot sell them openly on a stock exchange.
Limited liability.
Separate legal identity.

Some loss of control as shareholders have voting rights.
Unable to sell shares

Card 3

Front

Public Limited Company
ADV/DIS

Back

Preview of the front of card 3

Card 4

Front

sole trader
ADV/DIS

Back

Preview of the front of card 4

Card 5

Front

Partnership
ADV/DIS

Back

Preview of the front of card 5
View more cards

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