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Ownership - Coggle Diagram

- - - - Financial accounts must be submitted to companies house annually for inspection.
      - Shares cannot be publicly advertised and all shareholders must agree before a new shareholder can be added. This could bring potential conflict.
      - The business must be registered with companies house which is both time consuming and incurs a fee.
    - - Finance can be raised through selling shares privately.
      - Less risk of conflict among shareholders as shares can only be sold with agreement of all shareholders.
      - Shareholders only risk losing the value of their investment due to limited liability.
- - - - All the decisions and pressure rests with one person.
      - The sole trader has unlimited liability.
      - There is often limited capital.
    - - Costs are low due to a simplicity of setting up with no legal formalities.
      - No formal audited accounts are required.
- - - - Charity law imposes a high level of regulation and bureaucracy.
      - Trustees are not able to financially benefit from the charity unless authorized by the charity commission.
      - Given they are funded through donations, this can be risky, especially during a time of recession.
    - - Run with an ethical/moral purpose at its core which often motivates the work force and keeps productivity high.
      - Funded through donations which are tax exempt and can be topped up through gift aid.
      - The workforce is often supported by volunteers who work freely to support the cause, lowering the potential costs of the business.
- - - - Decision making can be a slow process.
      - Scope for conflict as more people are involved in the decision-making process.
      - All owners carry the personal risk of unlimited liability.
    - - Potentially easier to raise funds than a sole trader.
      - Lower risk of contract due to deed of partnership which outlines financial and practical responsibilities of ownners
      - Shared responsibility.
- - - - Financial accounts must be submitted to companies house annually for inspection. Which are available to public view.
      - Potential risk takeover as shares are publicly listed and anyone can purchase them.
      - The business must be registered with companies house which is both time consuming and incurs a fee.
    - - Finance can be raised through selling shares publicly vias the stock market.
      - Corporation tax is paid on profits and shareholders receive dividends. This way they pay less tax than is they were a sole trader.
      - Shareholders only risk losing the value of their investments due to limited liability.
- - - - Legal limits on payments of dividends which may not suit investor driven individuals.
      - Members have equal voting rights regardless of initial investment. This can seem unfair to those financially contributing more and could create conflict.
      - Members pay tax on dividends.
    - - Limited liability for members lowering their personal risk.
      - Shared contribution is encouraged for all members, increasing creativity and ideas.
      - Equal voting rights for members so democratic in its approach to decisions.
- - - - Strict rules adhere to for social enterprise status.
      - May struggle to access funding to run the business.
      - No dividends are paid to investors, decreasing the financial incentive to invest.
    - - The nature of this business helps resolve problems in society, making a positive difference to local environment.
      - Runs with an ethical/moral purpose at its core which often motivates the workforce and keeps productivity high.
      - Profits are reinvested to help achieve the social objectives.