Types Of Business Ownership
- Created by: Lilium Pumpernickel
- Created on: 12-07-18 09:27
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- Types Of Business Ownership
- Company
- Private Limited Company (LTD)
- Advantage
- Owner Keeps control Of The Business
- Limited liability for shareholders
- Can raise more finance
- Disadvantage
- Profits shared between more people
- Harder to raise finance
- A legal agreement must be setup
- Advantage
- Public Limited Company (PLC)
- Disadvantage
- Conflict of interests between shareholders and board of directors
- Risk of takeover by shareholders
- Too much growth results in poor labor regulations
- Advantage
- Large amount of capital from share issue
- Produce goods at a lower unit cost
- Large PLC's find it easier to borrow from banks
- Disadvantage
- Private Limited Company (LTD)
- Partnerships
- Advantage
- Easy Startup
- Only Taxed Once
- Diversity of skills
- Disadvantage
- Shared Risk
- Shared Responsibility
- Unlimited Liability
- Advantage
- Sole Trader (proprietor)
- Advantage
- Easy Info
- Taxation
- Easy Dissolution
- Disadvantage
- •Unlimited Liability
- Limited Business Life
- Limited Resources
- Advantage
- Franchises
- Multinational Companies
- Company
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