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Ownership - Coggle Diagram
Ownership
Sole Trader
Advantages
You are your own boss
You get to keep all profit
You get to do something you enjoy
Characteristics
One Owner
Can employ as many people as they want
Tend to be small
Disadvantages
Unlimited Liability
Long working hours
Banks tend to not lend small businesses money
Partnership
Characteristics
2-20 Owners
A deed of partnerships
Tends to be in businesses such as solicitors
Advantages
More finance can be raised
Workload and responsibilities can be shared
Opportunity to socialise
Disadvantages
Limited Liability
Arguments and disagreements are more common
If one partner acts badly business will suffer in results
Private Limited Company
Characteristics
Owned by shareholders who are family
Tend to be medium sized business
The business name will end in LTD
Advantages
Only family or friends can be shareholders
Limited liability
Disadvantages
Accounts must be readily available
Restricted who can buy into businesses so could be difficult to raise finance for the business
Both the required documents needed take time to produce
Public Limited Company
Advantages
Finance can easily be raised
Limited liability shareholders are only liable for company debt
Characteristics
Owned by shareholders who can be anyone
Tend to be large sized businesses such as tesco
The business name will end in PLC
Disadvantages
Accounts must be readily available to be seen
Both the required documents needed take time to produce
Decision making can take a long time