Business sepecialist qualification
sole traders
advantages
disadvantages
unlimited liability for debts
raising capital is difficult
start up costs are low
you're your own manager
keep 100% of profits
partnerships
sole traders are self employed and run their own business as an individual.
for example a plumber is a sole trader
advantages
disadvantages
two owners instead of one
greater borrowing capacity
lack of stability
shared liability
a partnership is where two people agree to cooperate to advance their ideas into a business.
an example of a partnership is john lewis and waitrose
LTD
advantages
disadvantages
a limited company is a company that owners are legally responsible for its debts. or an encouporated company meaning it has limited shares.
protects your assets from consequences of debt
lower taxation
higher setup costs
accountancy fees vary
an example of a limited company is any business with LTD at the end of its name.
PLC's
advantages
disadvantages
protection from liability
protection from debt
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high setup costs
vulnerability to the market
an example of a plc is rolls royce
a plc company is a company who has unlimited amount of shares they are legally allowed to sell to the public.
public sector
advantages
disadvantages
Any profit made goes back to the government and can be used elsewhere, may benefit tax payers by reducing level of tax
Government ensures essential services are provide
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Difficult to motivate employees in an impersonal organisation
very large making it difficult to manage
a public sector company is a part of the economy controlled by the state
an example of public sector would be schools