Please enable JavaScript.
Coggle requires JavaScript to display documents.
Advantages and Disadvantages - Coggle Diagram
Advantages and Disadvantages
LTD
Disadvantages
LTD companies must be incorporated in companies house
Company names are subject to certain restrictions
Accounting requirements are more time consuming and complex
Advantages
Creditabilty
Investment and leading opportunities
Tax efficiency and planning
PLCs
Disadvantages
Ownership and control issues
Initial Finance commitment is higher
More vulnerable to takeovers
Advantages
Raising Capital through public issues of shares
Widening the shareholder base and spreading risk
Growth and expansion opportunites
Sole Traders
Disadvantages
Can only be set up and owned by one person
Required to pay Income Tax between 20-45%
Many firms refuse to do business with sole traders
Advantages
Easy to remove profits for personal use
Quick and easy to set up online and no need to register with Companies House
Minimal paperwork and record-keeping requirements
Partnerships
Disadvanages
Unlimited liabilty
Potential for differences and conflict
The business has no independent legal status
Advantages
Access to Knowledge, skills, experience and contacts
Ownership and control are combined
Less formal with fewer legal obligations
Public Sectors
Disavdantages
Lack of innovation
Can often 'crowd' out private firms
Often considered to be inflexible
Advantages
Provides services that could be unprofitable if provided by firms in the private sector
It faces a little competition
Provides some of its services to all consumer