Business Ownership Types by https://padlet.com/ara126/szjvgnz6ft3e9m5x Unit 1 en-us 2024-11-05 13:05:06 UTC 2024-11-05 15:55:36 UTC hello@padlet.com Disadvantages https://padlet.com/ara126/szjvgnz6ft3e9m5x/wish/3202739463 A sole trader has unlimited personal liability this means that the owner is responsible for all business debts and legal operations if the business goes in debt personal assets can be at risk


Sole traders have limited access to capital they often find it challenging to find significant funding or business loans as banks my view sole traders is riskier compared to incorporated businesses this makes it harder to obtain capital


Sole traders often need to manage a business alone, working long hours and having a bad work life balance, if you fall ill or need a break there is no one to take over which can impact income and the business

]]> 2024-11-05 15:23:35 UTC https://padlet.com/ara126/szjvgnz6ft3e9m5x/wish/3202739463 Advantages https://padlet.com/ara126/szjvgnz6ft3e9m5x/wish/3202739603 -The owner maintains full ownership and decision making of the business which allows for decisions to be made quickly

-There are little costs associated with setting up a sole trader business, with lower compliance costs and administrative requirements than an LTD

-As a sole trader, any post tax profits are yours as you have no shareholders, investors, or partners to split the profits


]]> 2024-11-05 15:23:42 UTC https://padlet.com/ara126/szjvgnz6ft3e9m5x/wish/3202739603 disadvantages https://padlet.com/ara126/szjvgnz6ft3e9m5x/wish/3202741790 Disadvantages of a cooperative include

Limited resources and capital

Limited size

Lack of secrecy

Inefficient management

Internal quarrels and rivalries

Excessive government interference

Limited profits

Incompetent management

]]> 2024-11-05 15:25:00 UTC https://padlet.com/ara126/szjvgnz6ft3e9m5x/wish/3202741790 advantages https://padlet.com/ara126/szjvgnz6ft3e9m5x/wish/3202742203 Advantages of a co-operative include

Equal voting rights for members

Encourages member contribution and shared responsibility

Liability for members is limited

No limit on the number of members

Ability to access capital

Democratic decision-making

Shared ownership structure that encourages members to support each other

Generate income, jobs, and accumulate assets

]]> 2024-11-05 15:25:16 UTC https://padlet.com/ara126/szjvgnz6ft3e9m5x/wish/3202742203 Public Limited Company https://padlet.com/ara126/szjvgnz6ft3e9m5x/wish/3202742482

  • A public company offers its shares to the public and is listed on a stock exchange

    • ]]>     2024-11-05 15:25:28 UTC https://padlet.com/ara126/szjvgnz6ft3e9m5x/wish/3202742482     Advantages https://padlet.com/ara126/szjvgnz6ft3e9m5x/wish/3202743302

  • First benefit of public limited company is that it offers shares to the public allowing a company to spread the risk of ownership to a lot of people.

  • Another advantage is that the public companies have more accountability in their operations and management structure compared to smaller private companies.

  • Lastly plc offers investors the opportunity to own shares in the business, which can provide liquidity for shareholders as they can sell their shares on an open market.

    • ]]>     2024-11-05 15:25:59 UTC https://padlet.com/ara126/szjvgnz6ft3e9m5x/wish/3202743302     Definition https://padlet.com/ara126/szjvgnz6ft3e9m5x/wish/3202750269 A sole trader is a business owned by an a single individual. They don't have any partners, or investors so they keep full control of the company with decisions purely being theirs with profits being theirs aswell

    ]]>     2024-11-05 15:30:42 UTC https://padlet.com/ara126/szjvgnz6ft3e9m5x/wish/3202750269     Advantages of partnerships https://padlet.com/ara126/szjvgnz6ft3e9m5x/wish/3202751969 Shared knowledge and skills - Each partner can add value to the business by providing unique knowledge and skills that the other owners could have not known.


    Shared workload - The members can split their work and reduce stress and overload. This is important as it can be stressful to run everything solo.


    Quick and simple to start - The partnership only need an deed of partnership agreement and a partnership rule document to start. They do not need to register anywhere making the process quick and easy.

    ]]>     2024-11-05 15:31:52 UTC https://padlet.com/ara126/szjvgnz6ft3e9m5x/wish/3202751969     Definition https://padlet.com/ara126/szjvgnz6ft3e9m5x/wish/3202752276 It's and agreement where both parties have agreed cooperate together to advance their mutual interests. Partners could not only be individuals, but also businesses and interest-based organisations, etc.

    ]]>     2024-11-05 15:32:08 UTC https://padlet.com/ara126/szjvgnz6ft3e9m5x/wish/3202752276     Definition https://padlet.com/ara126/szjvgnz6ft3e9m5x/wish/3202753450 A Business or organisation that is democratically owned and controlled by its members

    ]]>     2024-11-05 15:32:54 UTC https://padlet.com/ara126/szjvgnz6ft3e9m5x/wish/3202753450     Disadvantages https://padlet.com/ara126/szjvgnz6ft3e9m5x/wish/3202753550

  • Expensive to set up, requires a minimum set up cost of £50,000.

  • Complex accounting and reporting requirements.

  • Risk of hostile takeover by a rival company as company cannot control its shares.

  • Shareholders may clash when making decisions about the business


    • ]]>     2024-11-05 15:32:57 UTC https://padlet.com/ara126/szjvgnz6ft3e9m5x/wish/3202753550     Advantages https://padlet.com/ara126/szjvgnz6ft3e9m5x/wish/3202754848

  • The private assets of the owner are protected if the business was to go into liquidation.

  • Limited liability allows for flexibility between different management structures.

  • is a cost effective way to run a business as it reduces insurance premiums and other mitigation methods.

    • ]]>     2024-11-05 15:33:45 UTC https://padlet.com/ara126/szjvgnz6ft3e9m5x/wish/3202754848     Definition https://padlet.com/ara126/szjvgnz6ft3e9m5x/wish/3202758543 A limited company referred to as "LTD", is a type of business entity recognised by law as a separate legal entity from its owners.

    ]]>     2024-11-05 15:36:03 UTC https://padlet.com/ara126/szjvgnz6ft3e9m5x/wish/3202758543     Examples https://padlet.com/ara126/szjvgnz6ft3e9m5x/wish/3202758948 Sunkist

    Ocean spray

    The CO-OP group

    Amul

    Ace hardware

    ]]>     2024-11-05 15:36:21 UTC https://padlet.com/ara126/szjvgnz6ft3e9m5x/wish/3202758948     Disadvantages of Partnership https://padlet.com/ara126/szjvgnz6ft3e9m5x/wish/3202759903 Shared Profit - The partners need to share and split profit which limits and reduces the amount that they could have initially gained if they worked solo.


    Longer time to make decisions and changes - Any changes and decisions need to be discussed with all partners and this may take time. It is also a factor that all partners must agree to the changes before they are carried out.


    unlimited liability - At least one of the partners must accept unlimited liability which can be very damaging if the business fails.

    ]]>     2024-11-05 15:36:54 UTC https://padlet.com/ara126/szjvgnz6ft3e9m5x/wish/3202759903     Disadvantages https://padlet.com/ara126/szjvgnz6ft3e9m5x/wish/3202760067

  • Must incorporate the company with Companies House.

  • Generally, there are more costs to set up.

  • One cannot be a director of a company if he is disqualified director or un-discharged bankrupt.

  • There are certain restrictions with regard to the company name.

  • The information relating to the owner of the company and the company are displayed on the public record.

    • ]]>     2024-11-05 15:36:57 UTC https://padlet.com/ara126/szjvgnz6ft3e9m5x/wish/3202760067     Liability https://padlet.com/ara126/szjvgnz6ft3e9m5x/wish/3202765381 Partnerships have unlimited liability meaning that if the business fails the partners may have to use their personal items in order to pay for the debt. It is not limited to the businesses assets.

    ]]>     2024-11-05 15:40:09 UTC https://padlet.com/ara126/szjvgnz6ft3e9m5x/wish/3202765381     3 Businesses in the local area https://padlet.com/ara126/szjvgnz6ft3e9m5x/wish/3202771726 Pret A Manger: Sinclair Beecham and Julian Metcalfe co-founded this popular food chain, revolutionizing the way people grab lunch on the go

    Mobile Bitz: Located in The Peacocks Centre, this business specializes in mobile phone accessories and repairs.

    Send Business Centre: A family-run office space provider located between Woking and Guildford. They offer a variety of office spaces and services to business of all sizes

    ]]>     2024-11-05 15:43:56 UTC https://padlet.com/ara126/szjvgnz6ft3e9m5x/wish/3202771726     Local businesses https://padlet.com/ara126/szjvgnz6ft3e9m5x/wish/3202774177 Jonathon Toop accountants

    -a sole trading accountants based in woking

    Heater's bakery

    -a sole trading business located throughout many locations, roughly 8 different shops

    360 business services


    ]]>     2024-11-05 15:45:23 UTC https://padlet.com/ara126/szjvgnz6ft3e9m5x/wish/3202774177     https://padlet.com/ara126/szjvgnz6ft3e9m5x/wish/3202775019 2024-11-05 15:45:53 UTC https://padlet.com/ara126/szjvgnz6ft3e9m5x/wish/3202775019