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Question 1 : What is business plan ? Written description of your business's future. Document that describes what you plan to do and how you plan to do it. A roadmap for your business that outlines goals and details how you plan to achieve those goals. Business plan also be used by firms that are trying to attract key employees, prospect for new business, deal with suppliers or simply to understand how to manage their companies better.

a) Sole Proprietorship  A sole proprietorship is a business that is owned by one person and that isn’t registered with the state as a corporation or a limited liability company (LLC).  Sole proprietorships are so easy to set up and maintain that you may already own one without knowing it.  Sole proprietorship is the simplest of business structures. Question 2 : Identify type of characteristic of business ownership.

Advantages Ease of formation Tax benefits Employment: Decision making Disadvantages Liability Taxes Lack of “continuity” Difficulty in raising capital Advantage & Disadvantage Sole Proprietorship

A Partnership can have: owners owners. 0 to any number of employees. 0 to any number of employees. A Sleeping Partner - someone who invests money but takes no part in the day to day running. A Sleeping Partner - someone who invests money but takes no part in the day to day running. A Deed of Partnership - lays out rules for running and dissolution of the Partnership eg sharing of profits. A Deed of Partnership - lays out rules for running and dissolution of the Partnership eg sharing of profits. A Partnership is in the Private Sector. B) Partnership

Advantages Shared decision making Shared decision making Increased specialisation Increased specialisation Easy to set up – few legal requirements Easy to set up – few legal requirements Disadvantages Unlimited liability Unlimited liability Profits have to be shared between partners Profits have to be shared between partners No continuity of existence No continuity of existence Partners may have disagreements Partners may have disagreements Advantage & Disadvantage For Partnership

C) Private Limited Company (Ltd) A Private Limited Company has the following key features: Ltd after it’s name Ltd after it’s name Owners called shareholders Owners called shareholders A separate legal existence from owners A separate legal existence from owners Governed by two legal documents: Governed by two legal documents: Memorandum of Association Memorandum of Association Articles of Association Articles of Association Controlled by a Board of Directors Controlled by a Board of Directors Run by a Managing Director Run by a Managing Director A Private Limited Company is in the Private Sector

Advantages Limited liability Limited liability Greater availability of finance Greater availability of finance Specialisation can occur Specialisation can occurDisadvantages More complicated to set up - legal formalities More complicated to set up - legal formalities Loss of individual control Loss of individual control Advantage & Disadvantage For Private Limited Company

D) Public Limited Company (Plc) A Public Limited Company has the following key features: Plc after it’s name Plc after it’s name Owners called shareholders Owners called shareholders A separate legal existence from owners A separate legal existence from owners Shareholders who are members of the general public Shareholders who are members of the general public Governed by two legal documents: Governed by two legal documents: Memorandum of Association Memorandum of Association Articles of Association Articles of Association Controlled by a Board of Directors Controlled by a Board of Directors Run by a Managing Director Run by a Managing Director A Public Limited Company is in the Private Sector

Advantages Limited liability Limited liability Greater availability of finance Greater availability of finance Specialisation can occur Specialisation can occur Disadvantages More complicated to set up - legal formalities More complicated to set up - legal formalities Loss of individual control Loss of individual control Greater threat of takeover Greater threat of takeover Advantage & Disadvantage For Public Limited Company