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7 Cards in this Set
- Front
- Back
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PLC |
This is the largest type of ownership and is known as a public limited company. Shares can be sold on the stock market and they have limited liability. However they need £50,000 of share capital to float on the stock market and they may be taken over if too many shares are sold. |
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Unlimited liability |
This applies to sole traders and partnership where there is no separate legal identity. Therefore if the business fails the owner can loose personal possessions. |
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Limited liability |
This applies to Ltd’s & PLC’s they are more financially stable. The owners only loose the money invested. |
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Sole Trader |
A business with one owner, this is the smallest type of ownership. The main benefit being the owner keeps all of the profit. However it has unlimited liability and there can be challenges with just one person trying to specialise in everything. |
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Partnership |
This type of ownership has 2 or more owners. Therefore they can share responsibility but they also have to share profits. A partnership still normally has unlimited liability. |
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Private limited company (LTD) |
This ownership has 1-50 owners and shares can be sold to friends and family. It has limited liability but it can be difficult to manage if there are many shareholders to satisfy. |
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Not-for-profit organisations |
This type of ownership does not aim to make a profit but the money it makes goes to a cause they are supporting. Charities and social enterprises are examples of not-for-profit organisations. They do not pay tax but it can be sometimes difficult to get volunteers that have the right skills. |
