The ownership of business.

The first 200 words of this essay...

The ownership of business

Private Business

Sole Trader

This is a person who decides to set up the business on her/his behalf. There mite be other people who work for the owner but the business to be quite small, if, quite possibly, very profitable. An example is a Chinese Takeaway or a Fish and chip shop.

Partnership

From 2 -20 people who get together to run a business. They will probably employ other people to work for them. But ownership belongs to the partners. A firm of solicitors ,architects or doctors is a good example.

Private Limited Company ( PLC )

These companies may start as family running affairs and develop. The reference to 'limited' means the extent to which owners are liable for the financial affairs of the company if they owe money or crease trading and have to pay off debts. If 1000 shares are available for issues and Henry Smith has Three of them he is responsible for three thousandths, 0.3%, of the debts the company owes. As a sole trader it would have been 100% and as partner receives which makes the proportion of liability for debts.