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Ownership - Coggle Diagram
Ownership
Private Limited Company
Disadvantages
Money is harder to gather quickly
These are generally smaller scale
Profits are split between shareholders
Advantages
A hostile takeover cannot occur
Death doesn't end the business
Introducing shareholders requires an entry fee which helps grow the business
Shareholders can only be friends or family
Shares are not sold on the stock market
Limited liability
Public Limited Company
can have thousands of Shareholders with the largest shareholder owning the company
Disadvantage
A hostile takeover can occur
you can be voted out of power or governing of the comapny
earnings and losses are public
limited to no liability for shareholders
Shares traded on the stock market
Advantages
Can gather money quickly
Shares can go up in value
You can be saved from bankruptcy by investing shareholders and traders
Partnership
Disadvantages
Profits are split
All things have to be agreed on
Arguments can occur
Started by 2 or more people
Unlimited Liability
Have to sign a deed of partnership
Advantages
Debt is split
More opinions on products
Stress and Hours are split
Sole Trader
Advantages:
Easy and cheap to set up
No legal requirements
You keep all profits
Disadvantages
Can cause strained relationships
If you die so does the company
Not much time off
Unlimited Liability
One person no more
Unlikely to get loans