Business Structures: A Comprehensive Guide to Legal Forms
Classified in Law & Jurisprudence
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English with a size of 2.42 KB.
Business Structures: A Comprehensive Guide
Sole Trader
Advantages:
- Full control over profits
- Fast decision-making
- Simple setup process
- Easy bookkeeping
Disadvantages:
- Unlimited personal liability
- Limited access to credit
- Reliance on personal funds
General Partnership
Advantages:
- Shared profits and responsibilities
- Collaborative decision-making
- Increased access to capital and credit
Disadvantages:
- Unlimited personal liability for all partners
- Potential for disagreements and conflicts
Limited Partnership
Comprises General Partners and Limited Partners.
General Partner:
- Shares profits and makes decisions
- Has unlimited liability
Limited Partner:
- Shares profits but has limited decision-making power
- Liability limited to capital contribution
Private Limited Company
Advantages:
- Limited liability for shareholders
- Easy transfer of shares
Disadvantages:
- Higher setup costs
- More complex regulations and compliance requirements
Public Limited Company
Advantages for Shareholders:
- Investment opportunities in large enterprises
- Potential for dividends and share value appreciation
- Easy to buy and sell shares
Disadvantages for Shareholders:
- Share price fluctuations and potential for loss
- Limited influence on company management
Advantages for the Company:
- Access to large amounts of capital through share offerings
Disadvantages for the Company:
- Increased regulatory requirements and administrative burden
Other Business Structures
Cartel:
A group of businesses that collude to restrict competition and control prices.
Contract of Sale:
A legally binding agreement for the sale and purchase of goods or property.
Vocabulary:
- Sole trader: Autonom
- Creditworthiness: Solvencia
- Personal unlimited liability: Responsabilitat personal ilimitada
- Bookkeeping: Contavilitat
- Joint and several liability: Responsabilitat económica conjunta
- Know-how: Saber com…
- Registre mercantil: Registre de les societats