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business Different type of ownership of a business

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Introduction

Business Ownership Sole Trader Main Features * A sole trader is somebody who owns and controls his/her own business. * Sole traders have unlimited liability. * They may employ people to help them at work but they have sole responsibility of the business. Advantages * The sole trader does not have to ask anyone for permission - they can make their own decisions. * The sole trader does not have to share any of the profits that the business makes. * The sole trader will always know what is happening in the business as they make all the decisions. * Control of the business cannot be lost. * It is easy for a sole trader to set up their business. * Little capital is needed to set up a sole trader. ...read more.

Middle

Advantages * As there is more than one person in a partnership, responsibility, stress and pressure can be shared. * Also as there are more people there are more ideas that can be shared. * Some partners may be better at one job than another - everyone can specialise in a particular area. Disadvantages * People argue. Disagreements may cause friction within the business. * Partners have unlimited liability, so partners may be less willing to invest. * The legal documents that have to be drawn up can take time to complete. CDs World This business is a partnership and also limited liability. The reason is partnership is because we can put all the money and make the shop better and partnerships is between 2-20 and limited liability is because when some this happen to the shop I do not lose my house or anything. ...read more.

Conclusion

This restricts the amount of capital that can be raised. The public can inspect financial information filed by the registrar. Sneaky competitors may use this to their advantage. Public Limited Company Public Limited Company * These companies have plc after their name, for example Marks and Spencer Plc. * Shares can be bought and sold by members of the public on the stock market. * The price of shares varies. If the business is doing well then the shares will be more expensive than if the business is doing badly. Advantages * Because shares can be bought and sold by members of the public, a plc can raise capital easily. * All shareholders have limited liability. Disadvantages * Because shareholders of a plc are members of the public, control of the business can be lost if someone buys a great number of shares. * Shareholders often don't know each other shareholders may feel isolated. ...read more.

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