Please enable JavaScript.
Coggle requires JavaScript to display documents.
Business Organisation (Sole Proprietorship (1 person, Sole owner of assets…
Business Organisation
Sole Proprietorship
1 person
Sole owner of assets
Owner liable for debts
Business ceases upon death
Low risk business
Must be registered under ACRA
Owner can commence legal action
Owner can cease business anytime
Resources from the owner (1)
Low admin cost
Partnership
2-20 people
Assets are jointly owned by partners
Partners are jointly liable for debts
Ceases upon death or new partnership formed with remaining partners
Low risk business
Must be registered under ACRA
Partners can commence legal action
Partner must agree to dissolve business
Resources from a few partners only
Slightly higher admin cost
Limited Liability Partnership
1 to unlimited
LLP owns assets
Partners liability is limited
Business carries on after death
LLP can commence legal action
Terminate by the order of the court
Available resources contributed by a few partners
Slightly higher admin cost then partnership
Company
Incorporation: Process of setting up a company
Struck off by the registrar of companies
Wound up by others
Types of company
Limited
Unlimited
Private
Exempt
Non-exempt
Public
Listed
Unlist