Legal structures of business

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Created by: jack hammock
Created on: 21-11-12 15:41

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Legal structures of business
- Sole Trader +
  - your own boss
  - Easy to set up
  - Make your own decisions
  - keep all the profirs
- Partnership +
  - Share skills
  - Share work load
  - More sources of finance
- Sole trader -
  - Heavy work load
  - Unlimited liability
  - Difficult to take a holiday
  - May lack finance
  - May not have all the skills needed
- Partnership -
  - may have disagreements
  - Liable for the actions of the other partners
  - Unlimited liability
- PLC -
  - have to register
  - have to disclose information on sales
  - Have to have accounts independently checked
  - If there are other investors the original founder is not in full control
- PLC +
  - Can bring in investors
  - Better status in the eyes of some customers
  - Limited liabilty
  - Continues after death of the founders

Comments

shoriffmiah

Report Fri 11th December, 2015 @ 17:59

Anything about corporate and unincorporated businesses?

TeachAccounting

Report Tue 9th April, 2019 @ 05:18

@Shoriffmiah: Unincorrporated businesshas two types, sole trader and partnership Corporate or Limited Company has got another two types mainly called Public Limited Company (PLC) and Private Limited Company. Other types includes, Joint Ventures, Nonprofit, Associations etc.

Jenursanj

Report Tue 17th December, 2019 @ 12:45

What about Private Limited companies (Ltd.)

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