Scribd
Upload
4K views

Revision Summary 1

This document summarizes different business structures including sole traders, partnerships, private limited companies, and public limited companies. Sole traders have complete control but no ability to share responsibilities or raise capital from others. Partnerships allow for more capital and sharing of responsibilities but partners must all be actively involved. Private limited companies allow for raising capital through shares and provide liability protection but shares cannot be publicly sold. Public limited companies can sell shares to the public, rapidly expand, and appoint specialist managers but have greater legal formalities and disclosure requirements.

Uploaded by

api-295360018
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
4K views

Revision Summary 1

This document summarizes different business structures including sole traders, partnerships, private limited companies, and public limited companies. Sole traders have complete control but no ability to share responsibilities or raise capital from others. Partnerships allow for more capital and sharing of responsibilities but partners must all be actively involved. Private limited companies allow for raising capital through shares and provide liability protection but shares cannot be publicly sold. Public limited companies can sell shares to the public, rapidly expand, and appoint specialist managers but have greater legal formalities and disclosure requirements.

Uploaded by

api-295360018
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

Revision summary: sole traders and partnership

Owner in complete control

No sharing of profitsIncentive to work hard

BUT

SOLE TRADER
PARTNERSHIP

No limited liabilityNo

Able to raise capital

Responsibilities

Easy to set up

BUT
Continuity

More ideas from

from all partners

shared

Partners can be specialize


new partner(s)

Revision summary: private limited companies


Raise capital from
of shares

Limited liability for

Separate legal

shareholders

Continuity

identify

Benefits

PRIVATE LIMITED
COMPANIES
Laminations

Cannot sell shares to


public

Legal formalities

Accounts must be
available for public
to see

Not easy to
transfer shares

Revision summary: public limited companies

Can sell shares

Rapid expansion possible

Limited liability

to public

specialist managers appointed

Continuity

Benefits
PUBLIC LIMITED
COMPANIES
Limitations

Legal formalities

Disclosure of accounts

Divorce between

Expansive to

and other information

ownership and control

go public

You might also like