Characteristics and Regulations of Business Entities

The video tutorial discusses different types of business organizations: sole trader, partnership, private limited company, and public limited company. Each type is explained in terms of ownership, liability, capital, and operational characteristics. Sole traders are owned by one person with unlimited liability, partnerships involve multiple owners sharing profits and liabilities, private limited companies have limited liability and restricted share sales, while public limited companies can sell shares publicly but must disclose financial information.

What is a key characteristic of a sole trader business?

• Can sell shares publicly

• Unlimited liability

• Owned by multiple people

• Limited liability

What is a potential disadvantage for a sole trader when expanding their business?

• Lack of personal contact with customers

• Limited liability

• Difficulty in raising capital

• Shared decision-making

How many people can own a partnership business?

• 1 to 10

• 2 to 20

• 5 to 50

• 10 to 100

What is a benefit of having partners in a business?

• Unlimited liability

• Sole decision-making

• No need for agreements

• More ideas and skills

What is a characteristic of a private limited company?

• Limited liability

• Unlimited liability

• No need to disclose financial information

• Can sell shares to the public

What is a restriction faced by private limited companies?

• Unlimited liability

• Cannot sell shares to the public

• Owned by only one person

• No need for financial disclosure

What is a key feature of public limited companies?

• Cannot sell shares publicly

• Limited liability

• No need for annual reports

• Owned by a single person

What is a requirement for public limited companies by law?

• Publish detailed annual reports

• Owned by a single person

• No need for financial disclosure

• Unlimited liability

What is a financial characteristic of public limited companies?

• Inexpensive to form

• No need for capital

• Unlimited liability

• Expensive to form

What is a commonality between private and public limited companies?

• No need for financial disclosure

• Owned by a single person

• Limited liability

• Unlimited liability