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different forms of businesses - Coggle Diagram
different forms of businesses
incorporated
PLCs
advantages
owners are not responsible for actions.protect shareholders.easier to raise finance.has a stable form of structure
disadvantages
greater admin costs.public disclosure of company information.directors legal duties
it is a separate legal identity.owners of a company are shareholders
unincorporated
sole traders
advantages
quick and easy to set up,can be transfered to a limited company once set up.simple to run and owner has control over all decisions.minimal paperwork.easy to shut down
disadvantages
owner is responsible for all of its actions.harder to raise finance often having limited of their own funds.business suffers if the owner gets ill.can pay a higher tax rate then the company.
sole traders are the most common they can employ people but they are not owners.sole trader owns all the assets and is personally responsible
partnerships
advantages
The most simple way 2 or more people can set up a business.minimal paperwork after partners agreement.business benifits from efforts from more than one power.partners can provide specialist skills.greater potential to raise finance
disadvantages
owners is responsible for all its actions.poor decisions by one partner damages the interests of other partners.harder to raise finance than a company.complicated to sell or close
partnerships is owned by more then one person.profit is shared.partners between them all own shares and responsibilities. partners still have unlimited liability.
public sectors
advantages
provides goods and needs for the public and are ran by the government meaning they are not trying to make a profit off you
disadvantages
business isnt making profit
businesses are ran by the public either by the government or by organisations that funded by the government.they are not ran for profit but exist for the needs of the public
example.network rail