concept of limited liability

define soletrader

where one person owns a business by themselves

disadvantages of soletrader

contains lots of work

unlimited liability

can be stressful

don’t have all skills to cover the buisness

adlvarnages of sole trader

gets to make decision making

get to keep all profit

independence.

define partnership

where 1-20 people own a buisness

advantages of partnership

different people can offer skills that other people front have

less work (work can be split upon the people)

helps with design making

disadvantages of partnership

have to share the profits

if one person leave, the buisness may die.

Takes more longer to do decision making

define limited liability

owners are responsible for the debt that they invested in the buisness

define unlimited liability

owner is responsible for all debts

define limited companies

buisnesses that have limited liability

Private limited company

owned by individuals, they don’t sell it to the public. Often in smaller buisnesses

public limited company

owned by shareholders and can be sold to the public. Usually in larger buisness

private limited company, advnatatges and disadvantages.

Advantages

• limited liability

• easier too manage

• more privacy

disadvantages

• harder to raise money since it cannot be sold in public

• growth is slower

public limited company, advantages and disadvantages.

advantages

• raise lots of money

• limited liability

disadvantages

• harder to kee control

• more rules and legal rules

• risk of takeover.