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The ownership of business
Private Business
Sole Trader
This is a person who decides to set up the business on her/his behalf.
There mite be other people who work for the owner but the business to
be quite small, if, quite possibly, very profitable. An example is a
Chinese Takeaway or a Fish and chip shop.
From 2 -20 people who get together to run a business. They will
probably employ other people to work for them. But ownership belongs
to the partners. A firm of solicitors ,architects or doctors is a good
Private Limited Company ( PLC )
These companies may start as family running affairs and develop. The
reference to ‘limited’ means the extent to which owners are liable for
the financial affairs of the company if they owe money or crease
trading and have to pay off debts. If 1000 shares are available for
issues and Henry Smith has Three of them he is responsible for three
thousandths, 0.3%, of the debts the company owes. As a sole trader it
would have been 100% and as partner receives which makes the
proportion of liability for debts.
Public Limited companies
PLC or plc follows the trading name, as in Lloyds TSB plc. These tend
to be large organization which has shares in vast numbers. These
shares have value which quoted on the Stock Exchange.
These are business run using the trading name of a much larger
company. For instance Body shop and Burger King
Public enterprises
Central government …