business ownership

what is unlimited liability

The owner is personally and fully responsible for all losses and debts of the business when it goes bankrupt

what is limited liabiltiy

only being responsible for the money you invested in the business if the business goes bankrupt

what is a sole trader

business owned and operated by one person

what are the benifits of being a sole trader

own boss

all profits are yours

own hours

what are the disadvantages of bieng a sole trader

unlimited liablity

hardwork

lacking expertiese

what is a partnership

business owned by 2 or more people upto 20

What is a deed of partnership?

An agreement between partners that sets out the rules of the partnership

what is a sleeping partner

a partner who invests in a partnership but has no part in the running of the business. limited liabiltiy

what is the advantages of a partnership

cheap and easy to set up

extra capital available

workload is shared

increased experties

shared responsibility

wat are the disadvantages of a partnership

shared profits

disagreements

shared control

unlimited liability

need for deed of partnership

what are private limited companies

A business that is owned by invited shareholders and controlled by a board of directors

what are advantages of Private limited companies

- limited liability

- more capital can be raised

- control cant be lost to outsiders

- business continues if shareholders die

what are disadvantages of privated limited companies

more expensive to set up

seperation of control

may be difficult to raise additional finance

what is a public limited company

Owned by shareholders who are members of the general public

Shares are bought and sold on the stock exchange

what are the advantages of public limited companies

limited liability

additional capital

banks more willing to lend

seperate legal entity

may benifit from economies of scale

what are the disadvantages of a public limited company

expensive to set up

must publish financila ccounts each year

unwanted takeovers could occur

seperation of ownership and control

what is a social enterprise

A business that is set up to help society rather than to make a profit.

what is a co operative

Business enterprises that are owned and self managed jointly by members

what is a consumer co operative

where consumers come togethor for mutual benifit

what is a worker co operative

a business that is owned and controlled by the whoe work force.

advantages of a co operative

-Funding Opportunities

-Favorable Tax-Breaks - Similar to an LLC

-Leverage Size for Financial Discounts

-Stakeholders Can Join or Leave Organization without Major Disruption

-Democratic Structure

disadvantages of a co operative

decisions will take lots of time

hard to make tough decisions

focuses more on fairness other than success