buisness ownership for growing buisness

what Are the types of buisnesses ownership for growing business

Private limited company

Multinational buisness

public limited company

define private limited company

buisness owned by share holder who have limited liability

define limited liability

only losing the amount shareholders invest in.

advantages of public limited company 

limited liability 

can get more money 

can seem important and trusted 

negotiate with better deals 

disadvantages of public limited company

complicating account

risk of takeover

less private

more attention from media

define public limited company

lets anyone buy buisnesses shares

define multinational company

buisness that has shops, factories or offices in more than one country.

advantages of multinational company

targets wider market

cheaper labour

reduces risk

strong reputation

disadvantages of multinational company 

money values change in different countries, affecting profits

damage image if working in poor conditions in one place

difficult to manage staff 

focuses less on main markets 

what are sources of finance are for growing buisnesses (internal)

retained profit

selling assets

advantages + disadvantages for internal finance of source for growing buisness

no interest needs to be paid

can lose opportunities and lose control

what are sources of finance for growing buisness (external) 

Loan capital 

share capital 

define loan capital

money borrowed by buisness, paying back + interest.

define share capital

selling parts of the buisness (shares)