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Business structure (Sole Trader (Low administrative cost, Sole Traders are…
Business structure
Sole Trader
Low administrative cost
Sole Traders are run by a single person but they can have an infinite amount of employees
Easy to set up
Hire and fire as they please
Often limited capital
limited range of skills
UNLIMITED LIABILITY
Partnerships
Joint ownership
UNLIMITED LIABILITY
Low capital
Shared responsibility and decision making
Two different set of skills on offer
Profit Sharing
Public Limited Companies
Limited liability
Capital raised through selling shares
More likely to gain a loan from a bank
likely to have economies of scale
expensive to set up
anybody can buy shares so there is a threat of losing control
Private Limited Companies
Limited liability
Others businesses are likely to invest
expensive to set up
Profits shared between shareholders
Shares cannot be sold to the public