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Year 11 GCSE Business Studies

Year 11 GCSE Business Studies. Limited Liability. Sole trader. Partnership. LTD. PLC. How many people in these 2 businesses?. Who can buy shares in a private limited company?. Who can buy shares in a public limited company?. The businesses above have all gone BANKRUPT!!!

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Year 11 GCSE Business Studies

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  1. Year 11 GCSE Business Studies Limited Liability

  2. Sole trader Partnership LTD PLC How many people in these 2 businesses? Who can buy shares in a private limited company? Who can buy shares in a public limited company? The businesses above have all gone BANKRUPT!!! They all owe £100,000

  3. Sole trader Partnership LTD PLC The sole trader has £50,000 of value in his business The partners have £75,000 of value in their business The shareholders have invested £60,000 The shareholders have invested £80,000 Where does the rest of the money come from? What happens to these figures…Do the shareholders lose their investment? What happens to the £40,000 / £20,000 Selling personal assets/belongings The ‘company holds’ the debt

  4. Definition • Investors (shareholders) in a limited company can only lose their investment in the business if it fails • They cannot be forced to sell lose their personal possessions (assets) to pay off debts • Sole trader’s and partnership’s can be forced to sell off personal possessions (assets) to pay off debts

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