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