Forms of Business Ownerships

Question 1

Sole Proprietorship (SP)

Answer 1

Owned by one person
Limited to personal fund
Owner liable to debts or losses
The owner runs the business
Minimal cost to set up the business

Question 2

Limited Liability Proprietorship (LLP)

Answer 2

Owned by two or more partners
Access to more funds
Partner liable to debt or losses
Partners involved in running the business
Regulatory requirements are needed to set up the business

Question 3

Private Limited Company (PLC)

Answer 3

Owned by 50 or less shareholders
More funds available
Shareholders liable to debt or losses
Professionals are hired to run the business
Must comply with statutory requirements