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Business Types - Coggle Diagram
Business Types
Sole Traders
A business owned by one person on their own, owning all the assets and are responsible for debts.
DISADVANTAGES
limited funds,business is affected if owner is, unlimited liability
BENEFITS
Easy to set up and close if necessary, owners in control
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Partnerships
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A business that is owned by more than one person therefore share all assets, liabilities, debts and profit.
DISADVANTAGES
need to make joint decisions, unlimited liability
BENEFITS
Ideas can be shared, an easy way to form a business, extra support for the business (more than one person)
LTDs
A limited company is a private business whose owners are responsible for debts and limits the amount of liability undertaken by the shareholders
DISADVANTAGES
greater admin costs, complicated to set up, can be complex
ADVANTAGES
Limited liability, easy access to finance, tax and insurance efficiency
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PLCs
A type of public business that is regulated where its recognised on the stock exchange and shares in the company can be bought.
ADVANTAGES
Wider financial input, shared responsibility, greater credibility
DISADVANTAGES
start up costs, financial information will be public
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Public Sector
A business that runs on behalf of the public, government or organisations who are funded by the government
ADVANTAGES
Provides services for everyone, faces little competition,
DISADVANTAGES
no profit, strict rules and regulations
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