Please enable JavaScript.
Coggle requires JavaScript to display documents.
business types - Coggle Diagram
business types
PLCs
-
advantages:
-better acess to capital
-shareholders are able to buy/sell their shares
-gives a company a more prestigious profile
disadvantages:
-once listed on a stock exchange, the company is likely to have a much larger number of external shareholders
-greater public scrutiny of the company's financial performance and actions
-
-
partnerships
-
advantages:
-minimal paperwork after Partnership agreement is set up
-simplest way for two or more people to start up a company
-partners can provide specialist skills
-greater potential to raise finance
-business benefits more from experties than owners
disadvantages: -full person liability
-a poor decision from one partner negatively affects the interests of the other partner(s)
-harder to raise finance than a company
-harder to sell or shut down
-partners have to honour eachothers decisions
-
LTD
-
advantages:
-limited liability, to protect shareholders
-easier to raise finance
-stable form of structure
disadvantages:
-greater admin costs -public disclosure of company information
-directors' legal duties
-
sole traders
definition:
where a single individual owns their own business,, the sole trader is personally responsible for the business' debts
-
disadvantages: -full person liability -harder to raise finance
-whatever happens to the owner, reflects on the business
-possibly has a higher tax rate than a company
-