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Differentiate sole trader, partnership, limited companies, public…
Differentiate sole trader, partnership, limited companies, public companies.
Sole trader
1 Owners
easy to set up
lack of capital
Unlimited liability
Power and Profit
Solely to the owner
None legal requirements
Not required publication of annual accounts
Partnership
2-20 of owners
Unlimited liability
powers
each partner can take active
profit share among the partners
none legal requirement
not compulsory publication annual accounts
Limited companyies
Shareholders have limited liability
Easy to raise capital
company name protected by law
possible to employ specialist staff
Private limited companies & Public limited companies
Public companies
Board of directors
Responsible day-to-day operation
accountable to government minister
Government Minister
Appoints Board and obtains funds
for the public corporation
The cabinet
decides public corporation's policy
Parliament
may question performance of public corporation
Owned by central government