Business Ownership: The Private Sector

When we talk about “prívate sector” we refer to the business activity owned financed and controlled by prívate individuals like:

Ø Sole Traders

Ø Partnerships

Ø Private Limited Companies

Ø Public Limited Companies (PLCs)

Ø Co-operatives

Ø Franchises

Ø Charities

We are talking more detailed about sole traders and partnerships

SOLE TRADER

- Owned financed and controlled by one individual but can employ other staff.

- Common in local building firms, small shops, restaurants, butchers etc…

ADVANTAGES

- The basic advantages are that it’s a business easy to set up, flexible and whit high degree of control. In addition you can keep all the profits

DISADVANTAGES

- The disadvantages are the big degree of liability of the owner, the limited acces to capital and the amount of time required to obtain benefits

PARTNERSHIPS

- Owned, financed and cotrolled by upwards of 2 partners

- Common in professions-lawyers, accountants, architects, surveyors, estate agents, vets etc

ADVANTAGES

- They have more acces to capital that soletraders, the responsibility its shared and its easy to set up too.

DISADVANTAGES

- The best disadvantage I think it’s that all partners liable for the debts of the others. In adition there are a potential risk of conflict and the decisions og one partner binds on the rest.