Public and Private Limited Companies PLC’s and Ltd’s.

Slides:

Advertisements

Similar presentations

1. 2a Business ownership Part a Business ownership Part 1 UK business ownership This means:  They are owned by private individuals  These individuals.

Advertisements

LIMITED LIABILITY COMPANY

Understanding Business Structures. Types of Business Structure Sole Trader Partnership Limited Companies Co-operatives Franchises.

RE-CAP What is a partnership?

Types of Organization.

5B Into the Big Time Public Limited Companies. Into the Big Time 5B Sole traders and partners are always under the pressure of unlimited liability This.

SOURCES OF FINANCE.

Company Accounts Companies can be divided into 2 types: A Public Limited Company which is shown as Plc A Private Limited Company which is shown as Ltd.

UNIT What do businesses do?

A Limited Company A Business owned by shareholders who each give the business money in exchange for Shares It is run by directors (who may also be shareholders)

GCSE Business Studies Types of Business GCSE Business Studies Unit 1 Introduction To Small Businesses 1.4 Making the Start- Up Effective.

Learning outcomes AllCan define a Private and Public limited company MostCan analyse the advantages and disadvantages SomeCan relate to a real life example.

Unit 1.2 – Types of Organizations

SG Business Management

Copyright 2005 – Biz/ed Business Ownership BTEC Business.

Companies sell shares to raise capital. The owners of a company are known as Shareholders. Companies are run by a Board of Directors on behalf of shareholders.

Types of organisation.

Higher Business Management

Different Types Of Business

FORMS OF BUSINESS OWNERSHIP

Limited Companies LTD and PLC What they are and the differences between them.

Choosing the right legal structure for the business GCSE Business studies Unit 2 Topic 6.

Level 1 Business Studies

Sole Trader Partnership Private Limited Company (LTD) Public Limited Company (PLC) What we will be doing over the next few weeks… When a person wants to.

Sources of Finance. Sources of finance We already know that a new business will have many costs e.g. –Premises, stock, wages, bills etc. They need money.

Level 1 Business Studies

Forms of Business 18. Forms of Business The four main forms of business organisation are:  Sole Trader  Private Limited Company  Co-operative  Semi-State.

 Register with Companies House  Company is a “separate” legal person so far as the law is concerned – i.e. it is separate from its shareholders  Issued.

Organisations 30/08/10. Small Businesses We can tell a small business by: We can tell a small business by: How many branches it has or if it has only.

Business ownership BTEC unit 1. Learning objectives To describe the different types of business ownership To identify 3 advantages and 3 disadvantages.

Financing Growth You need to know internal and external sources of finance. You also need to know the advantages and disadvantages of a range of different.

Business Ownership in the Private Sector

Sole Trader Forms of Business Ownership. What is a sole trader? A sole trader is a business owned by one person The owner makes all the decisions about.

Sole Trader Is a sole trader the largest or smallest type of business? How many owners does it have? A sole trader is the smallest type of business. It.

WebDesPix Ltd (WDP) WALT:

Types of Business Ownership. Who is your boss? Who is your boss’s boss? Can you become part owner? Forms of business ownership and type of business help.

Understanding Business Structures Types of Business Structure Sole Trader Partnership Limited Companies Co-operatives Franchises.

What is the link?.

Types of Business Ownership

Ownership of Swaledale Cheese Company SCC are a Private Limited Company (Ltd) Owners (now called shareholders) have to be invited to buy shares in the.

Business Structures How can businesses be legally organized?

Business Ownership in the Private Sector Is this man associated with public or private sector?

RE-CAP What is a partnership? What is an advantage of becoming a partnership? What is a disadvantage of becoming a partnership? What document do you need.

OEP AIM NCS COMPANIES. Limited Companies Aim:  Identify the characteristics of a Limited Companies Objectives:  Define the two types of Limited Companies.

Business’ legal structure (1) Lesson aims: To distinguish between unincorporated and incorporated businesses To know the differences between sole traders,

Level 1 Business Studies AS90837 Demonstrate an understanding of internal factors of a small business.

CHAPTER 16 BUSINESS OWNERSHIP. 2 R. Delaney Sole Traders A sole trader is a person who owns, manages and provides the money (capital) for a business.

Private and Public Limited Companies

FORMS OF BUSINESS OWNERSHIP PARTNERSHIPS PARTNERSHIPS –Unlimited Partnership –Limited Partnership CORPORATIONS CORPORATIONS –Private Limited Company –Public.

Sole Traders Private Limited Companies Public Limited Companies Partnerships State Owned Companies Franchises Forms of Ownership In this chapter we will.

Types of Business Ownership IB Business & Management.

Limited Companies Mrs Reid. Learning Objectives –Identify the key feature of Limited Companies –Define limited liability and incorporation –Explain the.

Types of Organizations

Types of business ownership

Legal structure of business

A-level Accounting Year 12

1.2 Understanding different business forms

Task 1 - Finish exam Question from last lesson

Business Ownership BTEC Business.

Legal Types of Business

By the end of the lesson you should:

Legal Structures Mahbuba Begum.

Unit 4: the firm as a producer

Forms of Business Organisation

Getting Started.

Success Criteria All: To be able to identify businesses ownership. Some: To be able to identify businesses ownership and their key features.

Ownership and liability

Public Limited Companies

Business Ownership BTEC Business.

Private and Public Limited Liability Companies

Presentation transcript:

Public and Private Limited Companies PLC’s and Ltd’s

Limited Companies  Sole traders and partnerships often wish to expand  Sometimes they are held back by a lack of capital  Also, partnerships can only take on a specific number of people….  Sole traders and partnerships have unlimited liability…  THEREFORE

 THE SOLUTION IS: To form a limited liability company (Ltd.) Sell shares to investors The 2 types of limited company are: Private limited company Public limited company

Private Limited Company  Uses Ltd after its name  Shares are sold mainly to friends and family of the owners  Shares not offered to the public  The majority of the shareholders make the decisions  Minimum number of shareholders is 2  Minimum amount of share capital is £2 to start up

An example of a Ltd…

Public Limited Company  Uses PLC after their name  Shares are open for sale to the public  Shares are traded on the stock exchange  PLC must have at least £50,000 of share capital to start up  Managers control how the company is run

Example of PLC

Advantages of Limited Companies Limited Liability  Encourage investment from shareholders Finance can be raised quickly from selling shares Usually bigger than partnerships and sole traders, better reputation for borrowing money Continuity

Disadvantages of Limited Companies Main director is overruled by shareholders Share prices might go down  Investors might stop giving you money Information is open to the general public  Costly (£100,000 to produce an annual report and accounts) Lots of paperwork to be drawn up… Shareholders have majority votes….owners could be voted out!