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advantages and disadvantages - Coggle Diagram
advantages and disadvantages
LTD's
Advantages
Limited liability, Easier to raise finance, Stable from of structure
Disadvantages:
Greater admin costs, Directors legal duties, Public disclosure of info
Example
Manorfield cars
PLC's
Advantages
Directional insight from shareholders, Reduction in personal libailities
Disadvantages:
Stock market vulnerability, Lots of legal paperwork
Example
Boots
Public sector
Disadvantages:
Not run to make profit
Advantages:
Funded by local govt, Provide goods and services to the public eg NHS
Example
National health service
Partnerships
Disadvantages:
Poor decision from one partner affects other partner, unlimited liability, hard to sell or close
Advantages
Partners can provide specialist skills, Partners each provide investment, Minimal paperwork once agreement is set up
Example
Bain and Company
Sole Traders
Advantages
Simple to run. Easy to close, Quick to set up
Disadvantages:
Unlimited liability, Can pay higher taxes compared to companies, Harder to raise finance
Example
RK Accounting Ltd