Types of Business Organizations

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What is a Sole Trader?

Back

A sole trader is a business owned and run by one person who has complete control and keeps all the profits.

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What is a key advantage of being a Sole Trader?

Back

You get to keep all the profits.

Front

What is a disadvantage of being a Sole Trader?

Back

The owner has unlimited liability for business debts.

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What is a Partnership?

Back

A partnership is a business owned by two or more people who share responsibilities and profits.

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What is a key advantage of a Partnership?

Back

You have more skills and ideas available because you have multiple owners.

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What is a disadvantage of a Partnership?

Back

Partners may disagree on decisions, which can lead to conflict.

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What is a Private Limited Company (Ltd.)?

Back

A Private Limited Company is a business that shares are only sold to family and friends.

Front

What is a key advantage of a Private Limited Company?

Back

Limited liability means personal belongings are safe from business debts.

Front

What is a disadvantage of a Private Limited Company?

Back

There is limited control as decisions are made by a small group.

Front

What is a Public Limited Company (Plc.)?

Back

A Public Limited Company is a business that sells shares to the public.