LECTURE 1 Welcome back!. Different forms of business organisations Sole proprietor/ sole trader *...

LECTURE 1

Welcome back!

Different forms of business organisations

• Sole proprietor/ sole trader *• Partnership *• Llp• Limited partnership• Company *We focus only on these*

Business names

Governed by:-

• the Companies Act 2006 - CA’06And • Companies (Trading Disclosures) Regulations

2008

Restrictions on company names

Limited/ Ltd/ LTD – indicates a private limited company

PLC/ Plc/ plc – indicates a public limited company

Restrictions on names of sole traders

• Personal name/ full name/ initials• Name of trade• Trading name• Mixture of all three

Partnership restrictions

• How many partners in the business?

• Family business

• Trade name

Why do these restrictions exist?What is their aim?

• Consumer protection• Stops offensive names coming into the public

domain• Transparency• Stops copy cat trading

Carrying on a business as a sole proprietor/ trader

• You are self employed so you work for yourself

• You can be more than a 1 man band, you can employ people

• You can run your business as you choose• You take all the profits• You take all the risks

Is it worth it ?

Good side = easy, don’t have to have lots of legal paper work, all profits belong to you and your affairs remain private

Bad side = if the business is to grow you may not have the expertise or money , all debts are payable by you