Business Law Concentrate 3e Resources is no longer available and it was replaced by Business Law Concentrate 4e.
Chapter 9 Key facts checklists
Chapter 9 Key facts checklists
Company law I: trading structures and forming the business
- It is important to recognize the distinct features between the five main forms of business organization (sole trader, simple partnership, limited liability partnership, private limited company, and public limited company).
- Sole trader organizations are very flexible but expose the owner to unlimited liability for losses, whilst operating a limited company limits potential losses of the shareholders but is subject to external regulation.
- There is no legal distinction between an individual trading as a sole trader and his/her business, but a limited company possesses its own legal personality irrespective of the members/directors who carry out its functions.
- A partnership can be ‘simple’, ‘limited’, or a ‘limited liability partnership’.
- While partners generally have the right to participate in the management of the firm, shareholders of a limited company are not automatically allowed to take a part in its management.
- Private limited companies are not required to have a minimum share capital but public limited companies require a minimum of £50,000 allotted share capital on registration.