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Ownership Sorting Exercise

1. Sole traders have unlimited liability for business debts and do not receive sick pay or holidays. 2. Partnerships require registration and have between 2-20 owners who share responsibility for business debts and management. 3. Private and public limited companies have owners with limited liability who invest shares and can raise finance by selling shares on a stock exchange.

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Werda Rashid Ekhlas
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343 views

Ownership Sorting Exercise

1. Sole traders have unlimited liability for business debts and do not receive sick pay or holidays. 2. Partnerships require registration and have between 2-20 owners who share responsibility for business debts and management. 3. Private and public limited companies have owners with limited liability who invest shares and can raise finance by selling shares on a stock exchange.

Uploaded by

Werda Rashid Ekhlas
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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It is hard to take holidays and All accounts must be The owner gets to make all

there is no sick pay if you published. This means the decisions. Sole Traders
work for yourself! anyone can see how much
money you make and what Running of the business is
These businesses need to be you own! shared between partners
registered with the Registrar making it easier on the
of Companies. The owner has unlimited owners.
liability – he/she is
responsible for the debts of Because shares are sold, it is
In a public limited company, the business. easy for these businesses to
shares are sold on the stock
raise finance.
exchange. Consists of between 2 and 20
owners.
This type of business has just These can be Private (Ltd) or Partnerships
one owner. Public (PLC).
The owner keeps all profits.

This type of business is the


Owners have limited liability Top examples include
easiest to set up.
– they only stand to lose window cleaners, carpenters
what they invest. and small shop owners.
People buy shares in this type
of business.
Top examples include All owners have unlimited
dentists, solicitors and liability – they are
accountants. responsible for the debts of A disadvantage is that the
the business. owners could disagree on
Sometimes, sleeping partners
decisions. Limited
invest in these types of
business. They have limited
To set up, the owners usually
sign a Deed of Partnership.
Sometimes profits are Companies
distributed to shareholders.
liability and only stand to lose How profits are shared will This payment is called a
what they invest. be shown in this document. dividend.

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