Entrepreneurs, types of business ownership, limited liability, stakeholders and business objectives.
A business combines resources to provide goods or services. It starts with an entrepreneur who takes the risk.
Types of business ownership
- Sole trader: one owner, easy to set up, unlimited liability.
- Partnership: 2+ owners sharing profits and (usually) unlimited liability.
- Private limited company (Ltd): shares sold privately; limited liability.
- Public limited company (PLC): shares sold on the stock exchange; limited liability.
Limited liability means owners can only lose what they invested — their personal assets are protected.
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