Post by Admin on Oct 10, 2016 13:24:55 GMT
Sole Trader
• A person that owns and runs their own business.
• Characteristics: one person provides all the money, makes all the decisions and keeps all the profit.
• Advantages: Easy to set up, keep all the profits, make all the decisions, personal contact with customers.
• Disadvantages: Unlimited liability (if your business fails you could lose all your own personal wealth), suffer all losses yourself, business ends when the owner dies.
Private Limited Company (Ltd.)
• A business that is owned by 1-99 people.
• Characteristics: 1-99 owners called shareholders, shares cannot be bought by the general public, shareholders receive a vote for every share they own, must have ltd. after its name, shareholders receive a share of the profits called a dividend and is usually owned by solicitors and accountants.
• Advantages: Limited liability (If the business fails, you can only lose the money that you invested in the company. Your own personal wealth cannot be touched), business continues even when an owner dies, easier to raise finance as you have up to 99 shareholders.
• Disadvantages: Legal documents are needed to set up a company, more costly to set up, decision making and profits are shared.
Co-Operative
• A business owned and run by its members.
• Each member has an equal say in the running of the business.
• Characteristics: Each member must buy at least one share and each member has only one vote.
• Advantages: Democratic as each member has an equal say, the members of the co-operatives have limited liability.
• Disadvantages: For members who own a lot of shares, they only get one vote and profits are shared in the form of dividends.
Types of Co-Operatives
• Producer co-op > Owned and run by the customers of the co-op.
• Retail co-ops > A group of retails join together.
• Worker co-ops > Owned by the workers in the business.
State Owned Business
• A business which is set up, financed and controlled by the government.
• Another name for this is a semi-state body.
• Characteristics: A government minister is responsible for each state company, they appoint a board of directors and the government keeps the profits or re-invests it in the company.
• Advantages: Ensure that essential services are provided for all people in the country and provide employment to a large number of people.
• Disadvantages: Some are in a monopoly position which means that they have no competition and this can lead to in-efficiency and higher prices and some make losses which are covered by the tax payer.
• A person that owns and runs their own business.
• Characteristics: one person provides all the money, makes all the decisions and keeps all the profit.
• Advantages: Easy to set up, keep all the profits, make all the decisions, personal contact with customers.
• Disadvantages: Unlimited liability (if your business fails you could lose all your own personal wealth), suffer all losses yourself, business ends when the owner dies.
Private Limited Company (Ltd.)
• A business that is owned by 1-99 people.
• Characteristics: 1-99 owners called shareholders, shares cannot be bought by the general public, shareholders receive a vote for every share they own, must have ltd. after its name, shareholders receive a share of the profits called a dividend and is usually owned by solicitors and accountants.
• Advantages: Limited liability (If the business fails, you can only lose the money that you invested in the company. Your own personal wealth cannot be touched), business continues even when an owner dies, easier to raise finance as you have up to 99 shareholders.
• Disadvantages: Legal documents are needed to set up a company, more costly to set up, decision making and profits are shared.
Co-Operative
• A business owned and run by its members.
• Each member has an equal say in the running of the business.
• Characteristics: Each member must buy at least one share and each member has only one vote.
• Advantages: Democratic as each member has an equal say, the members of the co-operatives have limited liability.
• Disadvantages: For members who own a lot of shares, they only get one vote and profits are shared in the form of dividends.
Types of Co-Operatives
• Producer co-op > Owned and run by the customers of the co-op.
• Retail co-ops > A group of retails join together.
• Worker co-ops > Owned by the workers in the business.
State Owned Business
• A business which is set up, financed and controlled by the government.
• Another name for this is a semi-state body.
• Characteristics: A government minister is responsible for each state company, they appoint a board of directors and the government keeps the profits or re-invests it in the company.
• Advantages: Ensure that essential services are provided for all people in the country and provide employment to a large number of people.
• Disadvantages: Some are in a monopoly position which means that they have no competition and this can lead to in-efficiency and higher prices and some make losses which are covered by the tax payer.