Types of Private Sectors

Types of Private Sectors | Advantages | Disadvantages | Features | Sole Traders | * It is easier to set-up a business. * You can make all the decisions * You keep all profits the profits. * Accounts and records can be kept private. * They can provide specialist services. * They can also respond to customer’s needs and queries faster. | * They have unlimited liability. * Money can become very difficult to obtain. * Costs and prices are usually higher than the competition. * Holidays can become very difficult to take. * Illnesses can shut the business, unless a friend or relative take over. * Owners may have to take longer hours. | Sole Traders are in complete control of the direction they take their business in; they decide their own aims and objectives and choose how they would achieve them. | Partnerships | * They are also easy to set-up, although a Deed of Partnership would be recommended * Responsibilities and decisions are shared, although this could become a disadvantage. * Accounts can also be kept private. * All of the partners invest money. | * Unlimited Liability, except for Sleeping Partners and LLP’s. * Money can become difficult to obtain. * If there is a disagreement in the business, then this could be a major problem. * There is a limit in the maximum number of partners. * A lot of problems can occurs when the partner leaves. | Partnerships are owned between two and twenty, each person in the business has a say in what direction the business goes in. They all decide on goals and aims, which could take very long if the partners, disagree with each other. | Private LimitedCompanies(LTD) | * Gets money from selling shares * Firm is usually bigger * Shareholders have limited liability * Usually employs specialists * Death & Illness won’t affect the running of the company * Shares can be given to family | * Accounts are not private * The company is incorporated so it is a