1. Lim Sei Kee @ cK

2. A sole proprietorship is a business entity owned by one person who is legally responsible for the debts and taxes of the business

3.  Ownership: 1 owner  Life: Ends when owner: - Is unable to carry on, - Dies, or - Closes the firm Responsibility for business debts if firm is unable to pay: Owner

4.  Total control of the business by the owner  Cheap and easy to start up  Keep all the profit  Business affairs are private

5.  Unlimited liability  Can be difficult to raise finance  Can be difficult to enjoy economies of scale, i.e. lower costs per unit due to higher levels of production  There is a problem of continuity if the sole trader retires or dies

6.  Ownership: 2 or more  Life: Ends when partner(s): - withdraws, - Dies, or - Closes the firm Responsibility for business debts if firm is unable to pay: Partners individually and jointly

7.  Amount each partner will contribute  Percentage of ownership of each partner  Share of profits of each partner  Duties each partner will perform  Debts- the responsibility each partner has for the partnership’s debts

8.  Spreads the risk across more people  Partner may bring money and resources to the business (e.g. better premises to work from)  Partner may bring other skills and ideas to the business  Increased credibility with potential customers and suppliers

9.  Have to share the profits.  Less control of the business for the individual.  Disputes over workload.  Problems if partners disagree over of direction of business.

10.  A company / corporation is: - a publicly or privately owned business entity that is separate from its owners - has a legal right to own property - Has a legal right to do business in its own name - stockholders are not responsible for the debts or taxes of the business

11.  A limited company is a business that is owned by its shareholders, run by directors and most importantly whose liability is limited.  Limited liability means that the investors can only lose the money they have invested and no more.  This encourages people to finance the company, and/or set up such a business, knowing that they can only lose what they put in, if the company fails.

12.  Ownership: Can be thousands  Life: Continues indefinitely; ends when: -business goes bankrupt -stockholders vote to liquidate Responsibility for business debts if firm is unable to pay: Stockholders can lose only the amount invested

13.  For people or businesses who have a claim against the company, “limited liability” means that they can only recover money from the existing assets of the business.  It is easier to raise money through other sources of finance e.g. from banks

14.  Costly and complicated to set up  Certain financial information must be made available for everyone, competitors and customers included  Shareholders in public companies expect a steady stream of income from dividends  Directors’ legal duties (set out by Companies Act)

15.  The objectives are normally more focused on the members of the co-operative, the local community and the world community.

16.  Achieve a common purpose.  More power to buy or bargain

17.  A long, drawn out decision-making process  Co-operatives may find it difficult to raise finance  Idealistic and ethical aims may not be agreeable with all members

18.  SME @ Definition @ Examples @ Importance