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GCSE Business 2020-2022 OCR

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Question:

What factors in choosing the Right suitable legal Structure for a Business?

Author: eric_galvao



Answer:

-Size of Business; Sole Traders are the most common start up's , as they're easier and quicker -Type of Business; Skilled jobs like Doctors or Vets usually go into Partnerships. If risks are present, Ltd's [Private Limited Company -Lender Requirements; Banks may want Sole Traders and Partnerships, as they are more confident it will be handed back -Investment protection; Limited Company may be the pathway if you concern mostly about your Personal Wealth -Control; Sole Trader Owners, or Shareholders holding most of the shares has control over the Business -Growth; Plc's allow greater sums of Finance to be raised.


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