business ownership Flashcards
what’s a sole trader ?
a business that is owned by one person and run by own person with unlimited liability. for example photographers or bloggers
limited and unlimited liability:
unlimited- personally responsible for the debts of the business.
advantages and disadvantages of being a sole trader :
make your own decisions, however works long hours
what’s a partner ship?
type of business between 2&20 people with unlimited liability. for example lawyers or doctors.
advantages and disadvantages of being a partnership:
shared decision-making, however shared profit and conflict
private limited companies (ltd)
small or large business with limited liability, often with a brand name. for example “green construction ltd”. the owners of an ltd are shareholders, who need to be invited in order to buy a share.
advantages and disadvantages of being an ltd:
limited liability, however time consuming
public limited companies:
as a business grows it may become an plc, where shares are sold to the public on the stock market.
advantages and disadvantages of being a plc:
limited liability, however expensive to set up
