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Investigation of the Types of Business Ownership Essay

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Investigation of the Types of Business Ownership

JCC Limited is a private limited company. Other forms of business ownership include:

The sole trader. This is the most common form of private sector business. This type of business has one owner who runs the business and may employ any number of people to help. Advantages of being a sole trader include the lack of legal restrictions, the sole trader is able to set up their business relatively quickly. Also all profits after tax are kept by the owner. There are a number of disadvantages to being a sole trader though, the main one being that sole traders have unlimited liability. This means that if the business gets into heavy debts then the …show more content…

Becoming a PLC tends to be very expensive. This is because, the company may use a financial institutions to process share applications. A PLC must have a £50,000 share capital and the company will have administrative and advertising expenses. There are several advantages to being a PLC as large amounts of money can be made from the sale of shares to the public and because of their large size PLC's can often dominate the market. However due to the large size of most PLC's the setting up costs can run into millions of pounds in some instances. Also as the shares are on sale to the general public it is possible that someone outside the company could take control of it.

Private Limited Companies, JCC Limited is a private limited company. These types of business tend to be smaller than PLC's. Like PLC's private limited companies have limited liability. This means that the owner, Mark Du Jardin in the case of JCC Ltd. can only lose what he has originally put into the business. The shares within a private limited company can only be brought and sold privately and cannot be advertised for general sale on the stock market. As the only shareholder Mark Du Jardin must agree on the transfer of shares. Private limited companies are often family run businesses, such as JCC Ltd. As Mark Du Jardin is the sole shareholder and

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