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Types of Business (Business Ownership (Sole trader (Disadvantages…

- - - - Unlimited liability
      - Don't have partners to help make decisions
      - Lack of finance may restrict business - can't take many holidays due to loss of finance
    - - Soley responsible for decision making, hours, wages
      - Few legal requirements
      - Can start with limited finance
  - - - Others to make decisions with
      - More finance as all partners contribute to capital
      - Shared skills
    - - Doesn't have separate legal identity: if one partner dies the partnership would end
      - Disagreements and shared profits
      - Unlimited liability
  - - - Shares can't be transferred without permission - time consuming
      - Expensive and lengthy process - Articles of Association and Memorandum of Association (certificate of incorporation)
    - - Owners can keep control of the business
      - Shares can raise additional finance
      - Limited liability
  - - - Everyone can view accounts
      - Legal process is lengthy and expensive
      - An annual general meeting has to be helf
      - Original owners are unlikely to remain in control
    - - High profile so easier to attract new customers
      - Shares can be sold on the stock market - large amount of share capital
      - Limited liability
  - - - Large businesses may be inefficient due to dis economies of scale (cost per unit may increase so the business becomes inefficient)
      - Not answerable to shareholders - may not focus on cost control
      - Can be used for political gain
    - - Government can support businesses struggling to survive
      - In some industries it'd be inconvenient to have more than one service e.g. the Royal Mint
      - Government support ensures vital businesses survive
  - - - Depend on volunteers - difficult to maintain support
      - Formal charity set up is expensive - regulated by Companies House and Charity Commission
      - Annual accounts must be provided to the above places
    - - Charities - same advantages of Ltd
      - Quick/easy to set up and can make an immediate impact
      - Small charitable groups - same a sole trader advantages
  - - - Articles of Association and Memorandum of Association must be completed and sent to Registrar of Companies
      - Tax must be paid on profits
    - - Reputation may be enhanced
      - own legal identity
- - - - Break even
      - Increase revenue
      - Reduce costs
      - Make a profit
  - - - Wanting a greater market share
      - Wanting physical expansion
      - Increasing provision
      - Benefiting from economies of scale
        
        Cost advantages gained when a business grows in size
      - Spreading risk by diversification
      - A larger business may find it easier to get financial help e.g. loans