Different forms of business

Question	Answer
What are the two sectors that businesses are broken down into?	- Public - Private
What is the different between these two?	- Public is controlled and maintained by the state - Private is owned and run by independent individuals
What are the 4 main forms of business?	- Sole trader - Private limited company - Public limited company - Non-profit organisations
What is the difference between limited and unlimited liability?	- Limited liability means that the owners are not personally responsible for the debts of the business - Unlimited liability means that the owner and the business are seen as a single entity in the eyes of the law
What is the main difference in finance raising between a Ltd. and a PLC?	- Ltd's cannot post their shares on the public stock market and so cannot raise share capital as easily - PLC's can attract investors to buy their shares on the stock market and raise share capital
Identify an advantage of being a sole trader	- Freedom - Profit - Simple - No fees
Identify a disadvantage of being a sole trader	- Risk - Time - Expertise - Finance - Vulnerability - Unlimited liability

Resource summary

	Created by Jacob Murphy almost 7 years ago