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Types of business organisation (Sole Trader Partnership (Owner in complete…
Types of business organisation
Sole Trader Partnership
Owner in complete control
No sharing of profits
Incentive to work hard
Easy to set up
No limited liability
No continuity
Able to raise capital from all partners
Responsibilities shared
More ideas from new partner(s)
Partners can specialise
Private Limited Companies
Benefits
Raise capital from sale of shares
Limited liability for shareholders
Separate legal identity
Continuity
Limitations
Cannot sell shares to public
Legal families
Accounts must be available for public to see
Not easy to transfer shares
Public Limited Companies
Benefits
Can sell shares to public
Rapid expansion possible specialist mangers appointed
Limited liability
Continuity
Limitations
Legal formalities
Disclosure of accounts and other information
Divorce between ownership and control
Expensive to 'go public'