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Differentiate sole trader, partnership, limited companies, public…
Differentiate sole trader, partnership, limited companies, public companies
Sole Trader
Number of Owners
1
Liability
Unlimited
Powers
Solely with the owner
Profit
Solely to the owner
Legal Requirements
None
Publication of Annual Accounts
Not Required
Partnerships
Number of Owners
2 - 20
Liability
Unlimited
Powers = Each partner can take part
in running the business
Profit
Share among the partners
Legal Requirements
None
Publication of Annual Accounts
Not compulsory
Private Limited Companies
Number of Owners
2 – no upper limit
Liability
Limited for all shareholders
Capital
Contributed by the shareholders
Powers & Control
Board of Directors
Elected by shareholders
Transfer of shares is restricted
Legal Requirements
Registered with “Registrar of Companies”
and a “Certificate of Incorporation”
obtained before trading begins.
Publication of Annual Accounts
Compulsory
Only available for Registrar of Companies
Public Limited Companies
Number of Owners
2 – no upper limit
Liability
Limited for all shareholders
Capital
Contributed by the shareholders
Powers & Control
Board of Directors
Elected by shareholders
Share are freely transferable
Legal Requirements
Registered as private limited company
but a “Trading Certificate” must obtained
before trading start
Publication of Annual Accounts
Compulsory
Anyone can request