Business Studies – 1.5.2 The role of stakeholder groups | e-Consult
1.5.2 The role of stakeholder groups (1 questions)
Login to see all questions.
Click on a question to view the answer
Businesses can be owned by different types of owners, each with its own structure and implications. The main types of owners are:
- Sole Trader: This is a business owned and run by one person.
- Advantages: Easy to set up, full control, all profits go to the owner.
- Disadvantages: Unlimited liability (personal assets at risk), limited capital, owner responsible for all decisions.
- Partnership: This is a business owned and run by two or more people who agree to share profits and losses.
- Advantages: More capital available than a sole trader, shared workload, diverse skills.
- Disadvantages: Unlimited liability (partners are jointly liable), potential for disagreements, shared profits.
- Shareholders: These are owners of a limited company who own shares in the company.
- Advantages: Limited liability (personal assets are protected), access to larger capital through share sales, potential for higher profits.
- Disadvantages: Less control over decision-making (unless they hold a majority of shares), profits are distributed as dividends, complex legal requirements.
The choice of ownership structure depends on factors such as the amount of capital needed, the level of risk the owners are willing to take, and the desired level of control.