business ownership Flashcards
what are the types of business ownership
sole trader , partnership , private limited company, public limited company
what’s a partnership
a business owned by 2 partners
what’s a sole trader
a business owned by one person
what’s does private limited company mean (ltd)
usually a smaller business so it can sell shares to invited people only
what’s a public limited company mean ?(plc)
it can sell shares to anyone who wants to buy
what’s an advantage of a sole trader
the owner makes all the decisions , few forms to complete , no information about profits must be published
disadvantage of a sole trader
the business stops when the owner dies
the business can not sell shares to raise finance
advantage of a partnership
the partners make all the decisions between themselves
no information about profits must be published
only needs a deed of partnership
disadvantages of a partnership
the profit will have to be shared between owners
the partner may disagree which leda to problem making decisions
they cannot sell shares to raise finance
a new partner will be needed to how a owner leaves or joins
advantage of a private limited company
shareholders can restrict who can buy shares
the business continues even of shareholders sell their shares or die
disadvantages of a private limited company
the public can see information about the business
the register of companies requires legal documents which take time to produce
advantage of a public limited company
the business continues even if the shareholders sell their shares or die
the owners (shareholders ) have and benefit from limited liability
disadvantages of public limited company
the public can see information about the business
anybody can buy shares
mangers are employed to make decisions
