Business Organisations - Unit 5: Chapter 20

Front

Types of business organisations

Back

Sole trader, Partnership, Private limited company (Ltd/CLS), Co-operative, Public limited company (PLC), Semi-state bodies, Franchise, Indigenous business.

Front

Advantages of a Sole Trader

Back

Easy/quick to set up, total decision-making, keeps all profits, maintains privacy on accounts.

Front

Disadvantages of a Sole Trader

Back

Takes on all risks (personal and financial), unlimited liability, may lack adequate capital, high workload/stress.

Front

Formation of a Sole Trader

Back

Start straight away in own name or register name with CRO.

Front

Liability of a Sole Trader

Back

Unlimited liability.

Front

Finance for a Sole Trader

Back

Limited to their savings or their ability to access loans.

Front

Control in a Sole Trader

Back

Owner maintains total control and makes all decisions.

Front

Advantages of a Partnership

Back

Risk and decisions shared, benefits from a range of experience/skills, access to more capital, maintains privacy on accounts.

Front

Disadvantages of a Partnership

Back

Unlimited liability, slower decision-making, partnership dissolved on death of a partner, profits shared.

Front

Formation of a Partnership

Back

Form LP1 must be completed for CRO – a deed of partnership is signed.