Notesale: Turn your study into money

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Advantages
- One person makes decisions
- One person keeps all profits
- Can provide a personal service
- Easy to set up
Disadvantages
- Long working hours
- No cover for absence through sickness or accident
- The business relies on skills of one person
- Difficult to raise money and expand
- Unlimited liability
- The owner must do everything

Partnerships
The business is owned by 2-20 people
Advantages
- Problems can be shared
- More skills and ideas are brought into the business
- More money is put into the business from partners
- Partners can specialize e
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Divorce solicitor
Disadvantages

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Partners may disagree about decisions
Profits must be shared
Some partners have larger share
Partners have unlimited liability

Private Limited Company
Advantages
- Limited liability – shareholders are not personally responsible for the
debts of the company
- Better image and status for the business
- Easier to borrow money from the bank
- Shares are only sold to family and friends
- New shareholders are only allowed if existing shareholders agree
- It cannot be taken over
Disadvantages
- It must register as a company
- Shares cannot be sold to the general public
- Accounts need to be audited and sent to the registrar of companies
- They are controlled by the companies acts
- If the company cannot pay its debts it goes into liquidation

Public Limited Companies
Advantages
- Can sell shares to the public
- Gain publicity and improve your image
- Better status – easier to borrow money
- Large PLCs an dominate their market
Disadvantages
- May get taken over – anyone can buy shares
- Stock market launch is expensive
- Competitors can see a copy of your accounts
- Shareholders may demand high dividends
- Shareholders have one vote per share
- The company may need to keep the profits and share price high by
cutting costs
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They can have more than twenty members, however
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- Risk of failing if they do not make a profit, so they typically do aim to
make profit, but it’s not their most important aim

Micro Finance Provider
- Inspired by Muhammad Yunis, founder of the Grameen Bank in
Bangladesh in the 1980’s
- Provide small amounts of finance to those who typically would not have
access to it
- Helps those in need to gain economic independence
- Can lead to very poor ending in debt
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