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