The Formation, Management and Dissolution of Business Enterprises
The Formation, Management and Dissolution of Business Enterprises
Type of business organizations
Sole Trader it is any business which is owned by one person. This person may recruit employee. Owner is personally responsible for the debts the company and he has unlimited liability. These are such people who testify specialized services such as hairdressers, plumbers or photographers.
Partnership it is business that is owned by two or more people. These people put jointly in the business their money, skills and other resources. They separated the profits and losses among themselves according to the signed contract or proportionately.
Limited Companies meaning that the owners are not personally responsible for the company's finance and any debts, they have limited liability. We have two types of limited companies:
Public Limited Company (PLC) may have an unlimited number of shareholders and offers their shares on the stock exchange. It can be bought and sold by everyone. This company must have a minimum share capital in the amount of £50,000.
Private Limited Company (LTD) is usually set up by family or friends, they can’t sell their shares to the public. They may only sell their shares privately.
Advantages and disadvantages business organizations
Sole Trader Advantages small companies, which are quick and easy to set up requires little capital easy to maintain control over it, the owner can quickly and independently make decisions
Disadvantages
do not have anyone to share responsibility for business owner mostly have to work hard and there is no one to replace him during illness or holiday unlimited liability
Partnership
Advantages
the more partners means the more money and thus greater opportunity to develop and profit partners sharing the responsibility for business. They undertake joint decisions and help each other. Therefore, as is their more they can have more ideas for conducting business and also for solving problems.
Easy
Type of business organizations
Sole Trader it is any business which is owned by one person. This person may recruit employee. Owner is personally responsible for the debts the company and he has unlimited liability. These are such people who testify specialized services such as hairdressers, plumbers or photographers.
Partnership it is business that is owned by two or more people. These people put jointly in the business their money, skills and other resources. They separated the profits and losses among themselves according to the signed contract or proportionately.
Limited Companies meaning that the owners are not personally responsible for the company's finance and any debts, they have limited liability. We have two types of limited companies:
Public Limited Company (PLC) may have an unlimited number of shareholders and offers their shares on the stock exchange. It can be bought and sold by everyone. This company must have a minimum share capital in the amount of £50,000.
Private Limited Company (LTD) is usually set up by family or friends, they can’t sell their shares to the public. They may only sell their shares privately.
Advantages and disadvantages business organizations
Sole Trader Advantages small companies, which are quick and easy to set up requires little capital easy to maintain control over it, the owner can quickly and independently make decisions
Disadvantages
do not have anyone to share responsibility for business owner mostly have to work hard and there is no one to replace him during illness or holiday unlimited liability
Partnership
Advantages
the more partners means the more money and thus greater opportunity to develop and profit partners sharing the responsibility for business. They undertake joint decisions and help each other. Therefore, as is their more they can have more ideas for conducting business and also for solving problems.
Easy