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Edexcel IGCSE·Business·IGCSE Business

Business Ownership

12 min read

Sole traders, partnerships, limited companies, and limited versus unlimited liability.

Types of ownership

  • Sole trader — one owner; easy to set up, keeps all profit, but unlimited liability and limited finance.
  • Partnership — 2+ owners; more capital and shared skills, but shared profit and unlimited liability.
  • Private limited company (Ltd) — shares sold privately; limited liability; harder to set up.
  • Public limited company (plc) — shares on the stock exchange; raises large capital but faces more regulation and takeover risk.

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