types of business ownerships >

What are the 4 types of ownerships?

Sole trader, partnership, private limited company, franchising

What is limited liability?

If the business is in debt, the owners cannot lose more than has been invested

What is unlimited liability?

If the business was debts, the owners must pay them

What happens if a business's debts are large for unlimited liability?

the owner must have their assets seized to pay the Bills

What is a sole trader?

Self-employed person who owns and runs a business they are responsible for business debts, assets and profits

Does a sole trader have unlimited or limited liability

What are the advantages of a sole trader?

• Keep all profit

• Make all decisions

What are the disadvantages of being a sole trader?

• nobody to help make decisions

• Unlimited liability

What are the advantages of being in a partnership?

• Can go on holiday

• Help making decisions

What are the disadvantages of being in a partnership?

• Share profits

• Cant take a break

What are the advantages of a private limited company ?

• Limited liability

• Makes business look professional

What are the disadvantages of a private limited company?

• tax

• Share profit

• Paperwork

Who can buy shares of a private limited company?

Friends and family

How does a private limited company expand?

by selling more shares

what does PLC mean ?

Private limited company

What does a franchiser do?

Offers sales to other businesses or individuals, and the rights to use its products, services or logos

What are the advantages of franchising?

• low risk

• Keep most profit

What are the disadvantages of franchising?

• A percentage of profits go back to owner

What does limited liability do?

Protects business owners personal assets from business debts and liabilities, allowing them to take risks without putting their personal finances at risk