Sole Trader
What type of business is owned and operated by a single individual?
Sole traders
What type of liabilty do parters have
Unlimited Liability - personal assets are at risk if partners incur debts that cannot be paid
Who can buy shares?
Family and friends/privately invited people.
Where can shares be bought?
On the stock exchange
Who owns a co-operative?
Members/ Membership is open to those who share common goals, interests, or needs.
They must agree to follow principles and rules.
They are guided by Seven core principles
One advantage of a sole trader business?
keeps all the profit
One advantage of a partnership?
Shared skills and resources
Shareholders in this type of company have limited personal liability, explain in short
protecting their personal assets from business debts.
Give an advantage
Can raise large sum of money by selling shares to the pubic or Inital Public Offering
Give one advantage
Shared benefit for members
shared resources/risks/profits
pool resources to achieve common goal
One disadvantage
Unlimited liability
One disadvantage of a partnership
Disagreement between partners
How is capital raise?
By selling shares to private investors.
Give a disadvantage
Risk of take over/loss of control
Example: if shareholders acquire more than 50% of shares, they can gain control of the company.
Give one disadvantage
decision making can be slow
delay in responding to opportunities or challenges, impacting the effectiveness.
limited access to capital/members may not be able to invest large sums which limits the ability to grow
How is the sole trader registered
Register with the Companies office of Jamaica to register business name.
Legal Document used in Partnership
Partnership deed
What is Perceptual succession
business continues even if ownership changes or a shareholder dies.
Who owns a public limited company?
Shareholders
Give an example of a cooperative in Jamaica?
Manchester co-operative Credit union
Farmers Co-operative
Give examples of the Sole Trader structure?
Barber shop, Hairdresser, Tailor, Street Vendor
Parners share this in a partnership, according to their agreement or percentage of ownership.
Profits
Grow and expand by accessing funds through the sale of shares
Capital Raising
Give an example of a PLC in Jamaica
Grace Kennedy, National Commercial Bank, Wisynco,
Carib Cement, Kingston Wharves
This key concept governs cooperatives
What is Mutal benefit or Collective Ownership
Members benefit cooperatives benefit and services