Adam El Masmoudi Garcia P1
Different Ownerships in Business
In this report I’m going to be talking about liability and ownership in business.
There are different 4 types of ownership, sole trader, partnership, public
limited company and private limited company.
Sole trader is any business that is owned and controlled by one person -
although they may employ workers. Some of its advantages are:
Easy to set up
Small capital investment means reduced start-up costs
Freedom to make decisions
There are also disadvantages and some of them are:
Responsibility
Long hours
Unlimited liability
A partnership is businesses owned by two or more people. Some of its
advantages are:
Partnerships are relatively easy to establish; however time should be
invested in developing the partnership agreement.
With more than one owner, the ability to raise funds may be increased.
The profits from the business flow directly through to the partners'
personal tax returns.
And some of its disadvantages are:
Business partners are jointly and individually liable for the actions of the
other partners.
Profits must be shared with others. You have to decide on how you
value each other’s time and skills.
You have to consult your partner and negotiate more as you cannot
make decisions by yourself. You therefore need to be more flexible.
Different Ownerships in Business
In this report I’m going to be talking about liability and ownership in business.
There are different 4 types of ownership, sole trader, partnership, public
limited company and private limited company.
Sole trader is any business that is owned and controlled by one person -
although they may employ workers. Some of its advantages are:
Easy to set up
Small capital investment means reduced start-up costs
Freedom to make decisions
There are also disadvantages and some of them are:
Responsibility
Long hours
Unlimited liability
A partnership is businesses owned by two or more people. Some of its
advantages are:
Partnerships are relatively easy to establish; however time should be
invested in developing the partnership agreement.
With more than one owner, the ability to raise funds may be increased.
The profits from the business flow directly through to the partners'
personal tax returns.
And some of its disadvantages are:
Business partners are jointly and individually liable for the actions of the
other partners.
Profits must be shared with others. You have to decide on how you
value each other’s time and skills.
You have to consult your partner and negotiate more as you cannot
make decisions by yourself. You therefore need to be more flexible.
