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Liability and ownership, ,, Luke, Abbie, Sarah - Coggle Diagram
Liability and ownership
Private Limited Company
Relatively small businesses and are one type of limited company. Their Business name ends in Limited or Ltd. A Ltd company must show that it has limited liability. They may not receive all of their money if their business fails.
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Advantages of this are that more capital is raised as there is no limit on the number of shareholders. Also, more people are prepared to risk their money than in a partnership due to limited liability.
Disadvantages are that profits have to be shared out among a large number of members and there is a legal procedure which can take quite a long time and be expensive.
Partnership
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examples: Shared ownership, Shared workload, Shared decision, making shared, profit, shared liability and debts
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how to set up:
Profits and losses are to be shared, How much money is to be shared between the partners, How much money/profit a each partner may take out of the business, Working arrangements for each partnership, Arrangements to adding or removing a partner
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