POB

Disadvantages of a public limited company

-Certain financial information must be available- for everyone to see including competitors and customers -Shareholders expect dividends -Expensive+ complicated to set up

Partnership

A business in which two or more persons combine their assets and skills usually between 2-20 persons

Cooperative

A business that is owned by the members it serves and is managed in their interest.

company

A separate legal entity or an artificial person from its members/owners

Disadvantages of a private limited company

Acquiring the necessary capital can be a challenge since shares cannot be sold to the public, profit is shared among a large number of persons, transfer of shares must meet the approval of the other members

Characteristics of public limited companies

Advertise shares to the public in order to raise capital, shares are bought and sold on the stock exchange, the company must have 'plc' in its name, owners have limited liability

Disadvantages of the Cooperatives

Decision making is usually long, it's main aim is not to make profit

Advantages of a private limited company

Each shareholder has limited liability(they only lose what they invested in the business), the company will continue to exist even if a member dies, large amount of capital is generated from the sale of shares to family members

Advantages of sole trader proprietorship

Easy to set up , owner keeps the profit, accounts are kept private, decision making is quick

Characteristics of a Private Limited company

It is usually family owned, membership is limited to 50 persons, shares cannot be sold publicly eg. Stock exchange, limited liability

Advantages of the Cooperatives

Members pool funds, members are able to get loans from the Cooperatives at usually competitive rates, members are owners of the cooperative, members receive dividends on their shares

public limited company (plc)

Often a large company, owned by shareholders who have limited liability. The company can sell its shares to the general public.

Characteristics of a partnership

Partners provides/contribute their own capital that is needed, profit or losses are shared, partners will bear the liability of the debts acquired by the business, the business must be registered, each partner must draw up a partnership deed then register it

Types of Companies

Private limited and public limited

Types of cooperatives

Producers' Cooperatives: members are usually in the business of producing eg. farming. They share the work load and share profits Buyers' Cooperatives: members come together to purchase a particular good that is used in their production so as to benefit form discounted bulk purchases Consumer/retail cooperative: members come together to purchase goods and services at a discounted price Financial Cooperatives: it is a service oriented arrangement in which members are from a particular profession eg. teacher, police or other groups with a common goal to form a credit union

Advantages of a public limited company

Shareholders have limited liability, company will exist even if a shareholder dies, raiser to raise capital, share can be transferred to anyone on the stock exchange

Characteristics of the Cooperatives

There are no restriction on the number of members, capital is raised by fee paid by members and also the selling of shares, Cooperatives are controlled by it's member

Features of a sole trader proprietorship

They may hire a small amount of people (the owner may not work at the business at all), the business must be registered

Sole Trader

business owned and operated by one person

Disadvantages of Sole Proprietorship

unlimited liability, lack of continuity if owner dies, lack of money, limited management skills, difficulty in hiring employees, problems finding capital