business start up

• 1. organisational options
• 2. production options
• 3. financial options

• 1. sole trader
• 2. partnership
• 3. private limited company

person who sets up, owns and runs their own business e.g. hairdresser

• 1. easy to set up... no government permission needed.. few legal registration requirements
• 2. keep all the profits... great motivation
• 3. confidential.. do not have to publish final accounts
• 4. full control.. makes all the decisions

• 1. unlimited liabiltiy
• 2. difficult to run a business alone.. no one to help
• 3. hard to raise money.. cannot sell shares and hard to get loans
• 4. results in long hours and lots of stress

business owned by and managed by between 2 and 20 owners called partners... pool their resources and talents to make a profit e.g. doctors

• 1. easy to set up... no government persmission.. few legal registration requirements.. deed of partnership
• 2. more capital
• 3. better decisions
• 4. confidential

• 1. unlimited liability
• 2. profits have to be shared
• 3. disputes may arise
• 4. slower decision making

business set up by between one and 50 shareholders... ltd.. one owner must have two directors.. separate legal identity e.g. Pony Tales Stables Ltd

• 1. limited liabiltiy
• 2. easier to raise capital
• 3. more knowledge, skills, experience... better decisions
• 4. pay less tax.. corporation tax
• 5. continuity of existance

• 1. complicated to set up.. memorandum of association... articles of association.. form A1.. certificate of incorporation
• 2. must publish final accounts
• 3. profits have to be shared
• 4. a lot of legal requirements.. financial a/c must be audited annualy

• 1. job production
• 2. batch production
• 3. mass production