Describe the ownership type, 3 advantages, 3 disadvantages and liability for debt by Melanie Rothwell https://padlet.com/rothwe1m/3lmpf7bcl8bo Detailed descriptions please en-us 2017-11-27 12:47:33 UTC 2017-11-29 13:56:24 UTC hello@padlet.com A private LTD is a small privately held business that is held to having 50 or fewer shareholders. They also cant sell shares on the stock exchange. https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/210806984 2017-11-28 10:15:16 UTC https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/210806984 a sole trader is a type of business which is owned and controlled only by one person therefore they are personally liable for the businesses debt. although sloe traders own and and control the business themselves they may also employ some members of staff. some examples of sole trader of a sole trader is a hairdressers or a plumbers https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/210807102 2017-11-28 10:15:41 UTC https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/210807102 https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/210807105 A social enterprise is a business that looks to help other people and not to make a profit, they will invest some or all of the profit they make back into the business.

]]> 2017-11-28 10:15:41 UTC https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/210807105 https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/210807330  A type of business organisation in which two or more individuals pool money, skills, and other resources, and share profit and loss in accordance with terms of the partnership agreement.]]> 2017-11-28 10:16:27 UTC https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/210807330 Advantages https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/210807762
  •  two heads (or more) are better than one
  • your business is easy to establish and start-up costs are low
  • more capital is available for the business
  • you’ll have greater borrowing capacity
  • high-calibre employees can be made partners
  • there is opportunity for income splitting, an advantage of particular importance due to resultant tax savings
  • partners’ business affairs are private
  • there is limited external regulation
  • it’s easy to change your legal structure later if circumstances change.
    • ]]>     2017-11-28 10:18:00 UTC https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/210807762     Not for profit is a type of organisation that does not earn profits for its owners https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/210807911 All the money earned is used to keep the organisation running]]> 2017-11-28 10:18:27 UTC https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/210807911 Advantages https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/210808005  
    • Control; Sole traders maintain full control of their business.
    • Profit retention; Sole traders retain all the profits of their business.
    • Private data – Information about sole traders is kept private, unlike that of limited companies which is necessarily made public after registration with Companies House.
    • Specialist;sole traders can offer a more personal service with local roots and ties.
    • Personal; Because there is no need to confer with other decision makers, sole traders can make decisions quickly and act on them swiftly, providing for the needs of their customers. 
    ]]>     2017-11-28 10:18:46 UTC https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/210808005     Disadvantages https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/210808101
    • the liability of the partners for the debts of the business is unlimited
    • each partner is ‘jointly and severally’ liable for the partnership’s debts; that is, each partner is liable for their share of the partnership debts as well as being liable for all the debts
    • there is a risk of disagreements and friction among partners and management
    • each partner is an agent of the partnership and is liable for actions by other partners
    • if partners join or leave, you will probably have to value all the partnership assets and this can be costly. 
    ]]>     2017-11-28 10:19:03 UTC https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/210808101     What is a franchise? https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/210808151 A franchise allows a franchisee to start a business by using the Franchisor's ideas, trademark and trade name. examples of franchises are McDonalds and Next.]]> 2017-11-28 10:19:12 UTC https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/210808151 Advantages https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/210808243
  • As a non-profit corporation, this type organization can get exemptions from corporate income taxes plus certain other taxes.



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    ]]>     2017-11-28 10:19:29 UTC https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/210808243     Disadvantages https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/210808361 Have to compete in the commercial market and face the same challenges and risks common to all businesses
    Having the necessary resources and skills to move towards becoming a social enterprise 
    Will introduce certain controls and restrictions as defined by its constitution, and that it will be expected to operate commercially, generating a proportion of its income from trading 



    ]]>     2017-11-28 10:19:52 UTC https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/210808361     Disadvantages; https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/210808429  
    • Liability; they are subject to unlimited liability. This means if the business gets into debt, the business owner is liable.
    • Finance – sole traders often find it difficult to raise finance to fund their business. This may result to no profits in the further and no money to expand.
    • Reverse economies of scale – sole traders will be unable to take advantage of economies of scale in the same way as limited companies and larger corporations, who can afford to buy in bulk.
    • Decision making – all decisions must be made by the sole trader. There is no room for help by others. So the success or failure of the business rests on one person. 
    ]]>     2017-11-28 10:20:08 UTC https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/210808429     Liability for debt https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/210808430  
    Creditors will initially ask the firm to pay its own debts. If the firm cannot pay, the creditors are likely to ask the individual partners to pay. Partners are ‘jointly and severally liable’ for the firm’s debts. This means that the firm’s creditors can take action against any partner. Also, they can take action against more than one partner at the same time. This applies even if there is a partnership agreement that says otherwise. If one partner pays more than their agreed share of the firm’s debts, they can recover the money that another partner should have paid by taking court action against them, if necessary. 

    A person who joins a partnership will not be liable for the debts it built up before they joined, unless an agreement is made that says something different. 

    A person who leaves a partnership will still be liable for the firm’s debts that were built up before they left.

    A person who leaves a partnership may still be liable for any debts the firm builds up after they leave. However, they will not be liable if:

    • they have agreement to this from the creditors and other partners; and 
    • their name is removed from the firm’s stationery. 
     If a partner dies, or is made bankrupt, the partnership and creditors can claim the deceased partner’s share of the debt from their estate. 
    ]]>     2017-11-28 10:20:08 UTC https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/210808430     Disadvantages https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/210808786 They have a limited funding
    They need a lot of time and money
    They don't make a profit 
    They need volunteers and members  

    ]]>     2017-11-28 10:21:18 UTC https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/210808786     https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/210808812 Advantages of private LTD companies are that you have limited liability, the business will carry on running even after the owner leaves or dies and you may have to pay less tax than other businesses.]]> 2017-11-28 10:21:25 UTC https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/210808812 Advantages https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/210808848 Provides an opportunity for local people to gain employment 
    Brings about a positive change to people and communities
    Social benefits – provides facilities to disadvantaged people 
    Profits/surpluses are ploughed back into the organisation.  This could be used to develop new products/services/activities 
    People have more ownership 
    Provides a formal recognised structure for your enterprise.  
    Gives the flexibility and freedom of being able to trade commercially whilst still fulfilling social aims 


     


    ]]>     2017-11-28 10:21:34 UTC https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/210808848     PLC (Public Listed Company ) is a limited liability company whose shares may be freely sold and traded to the public. https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/210809111 2017-11-28 10:22:20 UTC https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/210809111 Advantages https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/210809180  - Able to raise capital for expansion by selling additional shares.
     - Higher status than a public limited company so will benefit from more publicity.
     - Share prices listed on the stock exchange so shareholders ca work out the value of their shares. 
     - They can buy or sell shares.
    Limited liability for shareholders.
    ]]>     2017-11-28 10:22:37 UTC https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/210809180     Disadvantages of private LTD companies are that you cant sell shares on the stock exchange, you are limited to the number of shareholders you can have (50) and they are often more expensive and time consuming to set up. https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/210809229 2017-11-28 10:22:47 UTC https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/210809229 Disadvantages https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/210809643  - Original owners lose control and ownership of the business.
     - Professional directors and manager appointed to run the business may have different aims to those of the shareholders.
     - Must disclose all main accounts to the public. These are often greatly publicised by the media.
     - Company can be taken over if a majority of shareholders agree to bid.
    ]]>     2017-11-28 10:24:21 UTC https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/210809643     Liability for debt. https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/210810164 2017-11-28 10:26:08 UTC https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/210810164 The business has limited liability which is a major advantage of private LTD companies. https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/210810201 2017-11-28 10:26:20 UTC https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/210810201 A public limited company is an incorporated business and therefore is a separate legal unit from its owners. This also means that any debts or losses made by the business are not the responsibility of the individual shareholders. Therefore, if a company such as UTV media were to run up huge debts, the individual shareholders would only lose the money they had invested in the business. https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/211362693 2017-11-29 13:05:32 UTC https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/211362693 As they have limited liability no one is responsible for the personal debt of the business. https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/211362918 2017-11-29 13:06:15 UTC https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/211362918 Advantages https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/211363280 - Experience in business management is not required
    - Training is usually provided by the franchisor in how to operate the business
    - Offers independence to business owners of small business ownership
    - Minimised growth risk
    - Higher rate of success as franchises have an established reputation and brand, therefore the bran dis well known and trusted by many people


    ]]>     2017-11-29 13:07:09 UTC https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/211363280     Advantages https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/211363890 - Nonprofit organizations are allowed to solicit charitable donations from the public. 
    - Many foundations and government agencies limit their grants to public charities.
    - Most of the income of a non-profit is exempt from income taxes.
    The contribution from a donor is also tax exempt in most of the cases.
    - 
    ]]>     2017-11-29 13:08:50 UTC https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/211363890     Liability https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/211366192 Trustees can and can't be liable for a Incorporated charity going into debt. ]]> 2017-11-29 13:14:49 UTC https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/211366192 https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/211366486 liability for debt
    all the businesses debt is liable ]]>     2017-11-29 13:15:36 UTC https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/211366486     Debt liability https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/211366885 the debt liability of a social enterprise depends on which type of legal structure they use. There are 3 main types:
    Unincorporated Association (which may also be a Registered Charity)
    Company Limited by Guarantee (which may also be a Registered Charity) 
    Company Limited by Shares 

    ]]>     2017-11-29 13:16:38 UTC https://padlet.com/rothwe1m/3lmpf7bcl8bo/wish/211366885