Types of Business Organisation

owners have limited liability

shares can be sold to raise capital

decisions and responsibilities can be shared

the owner has complete control

They are run by and employ one person.

Most small businesses are sole traders.

All sole traders are public companies.

Most charities are sole traders.

only employs one person

is owned by one person

has a single customer

is a single firm in the industry

Partnership at will

General Partnership

Limited Liability Partnership

Particular Partnership

unlimited resources may be use

Unlimited payment is to be done

Personal property of proprietor will be use to pay business debt

unlimited time for business

Owns a share in a Sole Trader

Owns shares in a Private Limited Company

Owns shares in a Partnership

They are usually family-run businesses.

They sell shares on the stock market.

Their shares are owned privately.

They may be small businesses.

Article of Association

Memorandum of Association

Name approval Letter

Consent of Proposed directors

There must be at least one shareholder.

The people who own the company are shareholders.

Shares are available on the stockmarket.

Shares are never traded on the stockmarket.