Business Studies - AQA - GCSE - Types of Ownership

Business Studies - AQA - GCSE - Types of Ownership

1. Sole Trader

   • Advantages
     • Boss of yourself
     • Easy to make decisions quickly
     • Easy to set up
     • Keep all money made (profits)
     • Make your own decisions
   • Disadvantages
     • Unlimited Liability
     • May lack finance
     • Heavy Workload
     • May not have skills
     • Difficult to have a holiday

2. Partnership

   • Disadvantages
     • Possible arguments with partners
     • Unlimited Liability
     • Liable for being held responsible for the actions of partners.
   • Advantages
     • Shared Workload
     • Many sources of finance available
     • Range of skills

3. Private Limited Company

   • Disadvantages
     • Registration at companies house
     • Have to release information about sales/profits
     • Accounts must be independently checked
     • If there are multiple investors, the original founder is not in full control
   • Advantages
     • Limited Liability
     • Better status in eyes of customers
     • Continues after death of founder
     • Can have investors