A-level Edexcel Business Theme 1

• The main types of business structure are sole trader, partnership, private limited company (Ltd), public limited company (plc) and not-for-profit organisation.
• A sole trader is the simplest form of business ownership where one person owns and runs the business alone.
• Advantages of being a sole trader include having complete control over decisions made by the business, keeping all profits earned from running the business, and having lower start-up costs compared to other forms of business ownership.
• Advantages of being a sole trader include having complete control over decisions made within the business, keeping all profits earned by the business, and having lower start-up costs compared to other forms of business ownership.
• Disadvantages of being a sole trader include unlimited liability, meaning that if the business fails or gets into debt, the owner's personal assets can be seized to pay off debts owed by the business.
• Partnership refers to two or more people who own and run a business together.
• Advantages of forming a partnership include sharing risks and responsibilities with others, bringing different skills and experiences to the table, and potentially increasing profitability through shared resources.
• In a partnership, there must be at least two partners involved in the decision making process.
• In a partnership, there must be at least two partners involved in the business, with each partner contributing money, skills, time, and effort towards its success.
• Each partner has an equal say in how the business operates and shares responsibility for its successes and failures.
• In a partnership, there must be at least two partners involved in managing the business, with each partner sharing responsibility for making important decisions about how it operates.
• A disadvantage of forming a partnership is that disagreements between partners may arise due to differing opinions on how the business should operate.
• Disadvantages of forming a partnership include potential disagreements between partners about how the business should be run, unequal contributions to the business leading to resentment, and difficulty resolving disputes without legal action.
• Each partner has an equal say in decision-making processes, but they may also have different roles depending on their skills and experience.
• Limited companies are businesses owned by shareholders who have limited liability.