Characteristics of Business Ownership

Front

What is a Sole Proprietorship?

Back

A business owned by only one person.

Front

What is a Limited Liability Partnership (LLP)?

Back

A business owned by at least 2 persons called partners, with no maximum limit on the number of partners.

Front

What is a Private Limited Company?

Back

A business owned by persons called shareholders, with a maximum of 50 shareholders.

Front

How is capital contributed in a Sole Proprietorship?

Back

The owner contributes all the capital.

Front

How is capital contributed in a Limited Liability Partnership (LLP)?

Back

Capital is contributed by the partners.

Front

How is capital raised in a Private Limited Company?

Back

By issuing shares to raise capital.

Front

Which business form is easier and less expensive to set up?

Back

Sole Proprietorship.

Front

What is the ease of setting up a Limited Liability Partnership (LLP)?

Back

It has few regulatory rules, but one partner must declare the business's ability to service its debts.

Front

What is the complexity of starting a Private Limited Company?

Back

It is more complex and expensive, with many rules and regulations to follow.

Front

How easy is it to access funds in a Sole Proprietorship?

Back

It has limited access to funds.