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LIMITED COMPANIES, PARTNERSHIP - Coggle Diagram
LIMITED COMPANIES
one most common typeof business
capital divided into shares
profit divided among
shareholders
main subjects
Board of Directors
who control the company
Shareholders
ownerers of company
Directors
decide company policies
2 types
private
have small number of subscribers
capitla don't exceed 50.000£
shares can't sold without the permission of shareholders
public
is the opposite of private
advantage and disadvantage
easy to raise capital
easy to obtain finance from banks
Shareholders bear limited liability
company is complex and expensive
Shareholders don't have larg power
take decisions can be slow
PARTNERSHIP
association of two or more persons
to carry on business in common
have between 2 and 20 partners
2 types
Unlimited partnership
general partners
unlimitedly liable
Limited partnership
general partners
take active role in management
limited partners
not take active role
limotedly loable
advantage and disadvantage
responsibilities are shared by the partners
have more capital
more opportunities
make decision can be slow
expansion can be difficult
some partners have unlimited liability
there may be disagreements between partners