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Forms of Business
Revision for Form of Business Chaper
Term | Definition | ||||
---|---|---|---|---|---|
Name the 5 documents you must complete for a Private Limited Company? | Memorandum of Association | Articles of Association | Declaration of Compliance to the Companies Act | Statement of Start Up Capital | Consent to be a Director |
Sole Trader | Business with one owner and unlimited liability | ||||
Advantages of a Sole Trader | Keeps all the profits | Makes all the decisions | work their own hours | ||
Disadvantages of a Sole Trader | Unlimited Liability | No continuity if existence | Lack of capital to expand | ||
Cooperative | Business setup by its members for its members. 8+ members | ||||
Advantages of a Cooperative | Limited liability | Capital Available | |||
Disadvantages of a Cooperative | No motivation to buy more shares | May not have good business skills |