Types of businesses

• What is a private limited company

  A business owned by shareholders and the shares are not available to the general public
• 3 advantages of a ltd(private limited company)

  Limited liability

  owners can choose who shares are sold too

  shares can be sold to raise additional finance
• 3 disadvantages of a private limited company

  • can be expensive
  • shares not sold to general public
  • shares can’t be sold without permission from other shareholders
• What is a sole trader 


  A business that is owned and operated by one person
• 3 advantages of a sole trader

  • Make own decisions
  • choose own holiday
  • doesn’t have to share profit
• 3 disadvantages of being a sole trader

  • unlimited liability
  • big work load
  • no co owners to discuss decisions with
• What’s a partnership

  A business that is owned by 2 or more people
• 3 Advantages of a partnership

  • Different skills
  • others to discuss decisions with
  • few legal requirements
• 3 disadvantages for a partnership

  • Longer decision making with more people
  • all profits shared
  • Partners have unlimited liability
• What’s a public limited company 


  A business that is owned by shareholders and anybody can buy shares in the business
• 3 advantages of a public limited company

  • Shares can be bought easily
  • limited liability
  • high profile
• 3 disadvantages of a public limited company

  • decision making is long
  • anyone can view accounts
  • exoensive to issue further shares