Public Limited Company
* A public limited company is the largest type of business. These companies end their names with plc, the shares are usually traded on the stock exchange and can be owned by members of the public and institutional investors such as large banks and insurance companies. This type of business can raise a large amount of money by selling shares and use this to expand or develop the enterprise. All shareholders have limited liability. Limited liability is when the shareholders (owners of the company) are legally responsible for the debts of a company, only the value to their shares.
* Shares can be advertised
* Shares ...view middle of the document...
* There are many sole traders in the UK for example Salon M20 which is a hair dresser for women and they spend their whole day either taking calls or looking after a customer. The reason this salon is a sole trader is because the owner has the most control and the only control over the employees, when making decisions they don’t have to ask anyone as it is there business and they can keep private data to them self’s, as there is only one manger in the shop. Their a few disadvantages of being a sole trader for example liability, this mean that if the business goes into dept. then the government can at the worst risks take anything that is owned by you for example your personal savings, your house and any other belongings.
Private limited company
A private limited company is a company which has shareholders with limited liability, and its shares cannot be offered to general public.
The main advantage for a private limited company have limited liability, this means that the owners are not liable for any depts. or losses incurred by the company.
The main disadvantages for example setting up an Ltd requires certain procedures, paperwork and cost.
Partnership is when there is more than one person in the company and they are working together.
There are many advantages of partnership, for example doctors, dentists and lawyers are typical examples of professional who may go into partnership together and can benefit from shared expertise.
The disadvantages of being in a partnership is...