ownership

• What are the main business ownership structures discussed?

  Sole traders, partnerships, private companies, public companies
• What does PLUMS stand for in business ownership analysis?

  Profit distribution, liability, management, control, sources of finance
• How does profit distribution differ for sole traders and private limited companies?

  Sole traders keep 100% profits; private companies pay dividends
• How are profits shared in partnerships?

  According to the partnership deed agreements
• What could cause conflict in profit distribution among partners?

  Disparity in individual performance versus deed agreements
• Who decides the dividends in private and public limited companies?

  The board of directors decides on dividends
• What type of liability do sole traders have?

  Unlimited liability
• What is a key risk for partners in a partnership regarding liability?

  Partners are liable for each other's misconduct
• What type of liability do private limited companies have?

  Limited liability
• What sources of finance are available to sole traders?

  Personal debt against assets, no share capital
• What does full management control mean for a sole trader?

  They make all business decisions independently
• How does management control differ in private limited companies compared to public limited companies?

  Private companies often have owners as managers; public companies may separate ownership and control
• What financial source can partnerships access?

  Finance from partners, but no share capital
• What financial advantage do private limited companies have?

  Access to share capital from known investors
• What is a significant financial benefit for public limited companies?

  Access to stock exchange for large finance
• What risk do public limited companies face by being on the stock exchange?

  Risk of takeover by other companies