Business at Work

Essay by smarty123 February 2008

download word file, 22 pages 5.0

Ownerships a business can be classified in different ways. Private and Public sectors are three main categories in which a business ownership can fall in to.

*Sole Trader*Partnership*Private Limited Company (Ltd)*Public Limited Company (Plc)These are different types of business ownerships.

Sole trader a Sole trader is one of the most common forms of a business ownership and is the easiest to set up. One person owns it although it may employ several others people.

Being a sole trader means the owner has total control of the business and theprofits. You are able to give more personal service to your customers and are able to make changes within your business very quickly due to little or no official procedure, as there is only one person to make the decisions. You are able to spend as much money as you wish on the business, as you do not have to justify yourself to someone as to why you have spent so much.

The disadvantage of being a sole trader is that there is unlimited liability for the owner, and is it is difficult for a business to find sources of finance for expansion.

partnership a Partnership is usually consists of 2 to 20 partners; people in a partnership can share their skills with each other bringing new ideas and sharing the workload.

The advantage of being in a partnership is that the owners have full control over the business and profits. There are very few legal requirements although a deed if partnership is desirable and share any debts.

The disadvantages are that people can fall out of the partnership due to any misunderstanding or conflicts, ordinary partnerships do not have limited liability, and partners can rarely borrow or raise a large amount of capital.

Making decisions may take longer and may be...